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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 11-8 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 margin-66-188 344 contribution margin ratio-1.1-2.08889 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 dont know how many products they can make per day)...
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This note was uploaded on 10/10/2010 for the course ACCT 225 S taught by Professor Webster during the Spring '10 term at Franklin.
- Spring '10