Surf Company can sell all of the two surfboard models it produces, but it has...
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Surf Company can sell all of the two surfboard models it produces, but it has only 424 direct labor hours available. The Glide model requires 2 direct labor hours per unit. The Ultra model requires 4 direct labor hours per unit. Contribution margin per unit is $224 for Glide and $348 for Ultra. (a) Compute the contribution margin per direct labor hour for each product. (b) Determine the best sales mix and the resulting contribution margin. Complete this question by entering your answers in the tabs below. Compute the contribution margin per direct labor hour for each product
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Surf Company can sell all of the two surfboard models it produces, but it has only 424 direct labor hours available. The Glide model requires 2 direct labor hours per unit. The Ultra model requires 4 direct labor hours per unit. Contribution margin per unit is $224 for Glide and $348 for Ultra. (a) Compute the contribution margin per direct labor hour for each product. (b) Determine the best sales mix and the resulting contribution margin. Complete this question by entering your answers in the tabs below. Compute the contribution margin per direct labor hour for each product 