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Unformatted text preview: mentioned below. (Options) Ran k J K L M A 1st 2nd 3rd 4th B 1st 2nd 4th 3rd C 2nd 1st 4th 3rd D 2nd 3rd 1st 4th E 3rd 2nd 1st 4th Solution to the above Problem With the throughput accounting labor cost is assumed to be a fixed cost and contribution margin consists of sales less variable cost. The contribution per bottleneck minute is; J = 13.25(1590/120) selling price 2000 – direct material cost 410 = 1590/ 120 i.e machine minutes per unit of output. Therefore, contribution margin per machine hour = 13.25 Similarly other products; K = 13 = 1300/100 L = 17.14 = 1200/70 M = 12.27 = 1350/110 The rankings are L,J,K and M...
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This note was uploaded on 02/29/2012 for the course E 101 taught by Professor Sfere during the Spring '12 term at Abilene Christian University.
- Spring '12
- Contribution Margin