Question
Asked Nov 2, 2019
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Marten Corp. has a limited number of machine hours available to produce its three products
A11, B22, and C33. Determine the order that these products should be produced given the
following data:
A11 B22 C33
$14 $36 $10
Unit sales price
32
6
Unit variable costs
2
4
5
Machine hours per unit
o A11, B22. C33
B22, C33, A11
A11, C33. B22
C33. A11, B22
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Marten Corp. has a limited number of machine hours available to produce its three products A11, B22, and C33. Determine the order that these products should be produced given the following data: A11 B22 C33 $14 $36 $10 Unit sales price 32 6 Unit variable costs 2 4 5 Machine hours per unit o A11, B22. C33 B22, C33, A11 A11, C33. B22 C33. A11, B22 eTextbook and Media

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Expert Answer

Step 1

Calculate the contribution margin.

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Particulars All В2 С3 Unit sales price Less: Unit variable costs Contribution margin S 10 $ 3 $ 14 $ 36 $ 6 $ 32 S 4 S8 $ 7

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Step 2

Calculate the contribution margin per machine.

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Particulars All В22 С33 Unit sales price Less: Unit variable costs Contribution margin (A) Machine hours per unit (B) Contributi on margin per machine (A+B) $1.60 S1.00 S 3.50 $ 36 S 10 $ 3 S 32 S 7 S 14 $ 6 $ 4

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Step 3

The correct order is C33, A11 and B22. If Marten corp. uses this order then the resources (time) can be...

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Marginal Costing

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