Surf Company can sell all of the two surfboard models it produces, but it has...
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Accounting
Surf Company can sell all of the two surfboard models it produces, but it has only direct labor hours available. The Glide model requires direct labor hours per unit. The Ultra model requires direct labor hours per unit. Contribution margin per unit is $ for Glide and $ 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.
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