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Unformatted text preview: But they will also make $150,000 by renting the space. So in all they will be making a profit of 60000 Exercise 118 selling price 60 90 80 variable exp direct mat 27 14 40 direct labor @$8 96 256 128 var MO 3 8 4 total variable exp 126 278 172 contribution margin66188 344 contribution margin ratio1.12.08889 4.3 I would recommend them to work on product C because when only considering the labor, Product C looks more profitable. (I am not sure how to calculate how much overtime should be paid. we don’t know how many products they can make per day)...
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 Spring '10
 webster
 Depreciation, Contribution Margin, variable operating cost, Rent variable cost, variable exp contribution, price variable exp

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