Contribution margin per unit discussion

timer Asked: Mar 25th, 2014

Question description

Ring Company can sell a maximum of 1,000 units of each size of table. Machine hour capacity is 8,000 hours per year.
a. Which table has the higher contribution margin per unit?
b. Which table has the higher contribution margin per hour?
c. How many tables of each size should be produced to maximize income, and what is the maximum income?

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