Homework Answers
| Particular | A | B |
| Sales | $29 | $25 |
| Variable cost | $20 ($20 + $5) | ($14+$3) $17 |
| Contribution margin | $9 | $8 |
| Labor hours per unit | 3 | 2 |
| Contribution per labor hour | $3 | $4 |
Any unused capacity should be devoted to service B which has $1 more contribution per labor hour than service A.
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Service Emphasis
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Service G
Service H
Per-unit data at 10,000 services
Sales price
$28
$15
Service costs:
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11
7
Fixed
6
4
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Variable
5
2
Fixed
3
1
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constraining resource. Each unit of G requires 3 hours of labor,
and each unit of H requires 1 hours of labor. Assuming...
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