COMM 305 Chapter Notes - Chapter 7: Contribution Margin, Net Income, Marginal Cost
24 Jan 2015
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If the line is discontinued, lion will show an additional ,000 loss. Review 7-16 (a) if time constraints are ignored, then the corporation"s best strategy would be to produce only the product that provides the highest contribution margin per hour unit. (c) as long as the capital corporation could sell the units, any additional time should be used to produce more of the better product, as it provides the highest contribution margin per hour of limited resource. . 29 (c) determine how many of each product to produce: Less: hours to produce c (200 0. 0714) Less: hours to produce a (200 0. 10) Problem 7-34a (a) calculate per unit cost for the relevant costs: Variable cogs: (,150,000 ,000) 90,000 units = . 00. Variable s & a: (,000 ,000) 90,000 units = . 20. Calculate the incremental income (loss) from the special order: Incremental revenue (9,000 units per unit) Variable s & a (9,000 . 20 per unit)
