Chapter 12 Full Student Version [Read-Only]

Chapter 12 Full Student Version[Read-Only]

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Unformatted text preview: 0.50 min. $ 24 $ 30 12-32 Utilization of a Constrained Resource According to the plan, we will produce 2,200 units of Product 2 and 1,300 of Product 1. Our contribution margin looks like this. 1 Contribution margin per unit Time required to produce one unit Contribution margin per minute $ ÷ If there are no other considerations, the best plan would be to produce to meet current demand for Product 2 and then use remaining capacity to make Product 1. Production and sales (units) Contribution margin per unit Total contribution margin Product 1 1,300 $ 24 $ 31,200 Product 2 2,200 $ 15 $ 33,000 The The total contribution margin for Ensign is $64,200. 12-33 Questions?...
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This note was uploaded on 04/01/2014 for the course RSM 222 taught by Professor D.cianflone during the Winter '10 term at University of Toronto- Toronto.

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