Answer :
To calculate the contribution margin per unit of constrained resource (labor hours) for Product B, follow these steps:
1. Identify the selling price per unit for Product B:
- Selling Price per unit for Product B: \[tex]$1,800 2. Identify the variable cost per unit for Product B: - Variable Cost per unit for Product B: \$[/tex]1,200
3. Calculate the contribution margin per unit for Product B:
- Contribution Margin = Selling Price per unit - Variable Cost per unit
- Contribution Margin = \[tex]$1,800 - \$[/tex]1,200
- Contribution Margin = \[tex]$600 4. Determine the number of labor hours required per unit for Product B: - Labor hours per unit for Product B: 6 hours 5. Calculate the contribution margin per hour for Product B: - Contribution Margin per Hour = Contribution Margin per unit / Labor hours per unit - Contribution Margin per Hour = \$[/tex]600 / 6 hours
- Contribution Margin per Hour = \[tex]$100.0 Therefore, the contribution margin per unit of constrained resource (labor hours) for Product B is \$[/tex]100.0 per hour.
1. Identify the selling price per unit for Product B:
- Selling Price per unit for Product B: \[tex]$1,800 2. Identify the variable cost per unit for Product B: - Variable Cost per unit for Product B: \$[/tex]1,200
3. Calculate the contribution margin per unit for Product B:
- Contribution Margin = Selling Price per unit - Variable Cost per unit
- Contribution Margin = \[tex]$1,800 - \$[/tex]1,200
- Contribution Margin = \[tex]$600 4. Determine the number of labor hours required per unit for Product B: - Labor hours per unit for Product B: 6 hours 5. Calculate the contribution margin per hour for Product B: - Contribution Margin per Hour = Contribution Margin per unit / Labor hours per unit - Contribution Margin per Hour = \$[/tex]600 / 6 hours
- Contribution Margin per Hour = \[tex]$100.0 Therefore, the contribution margin per unit of constrained resource (labor hours) for Product B is \$[/tex]100.0 per hour.