Nicholas, Inc. has provided the following unit data for review: Simple Product Advanced Product Selling price &n
- Nicholas, Inc. has provided the following unit data for review:
Simple Product Advanced Product
Selling price $22.75 $55.00
Variable cost 10.00 34.50
Pounds of scarce raw material per unit 3 5
Which product, Simple or Advanced, is most profitable for Nicholas, Inc. to manufacture?
Homework Answers
| Simple Product | Advanced Product | |
| Selling price per unit | $22.75 | $55 |
| Variable cost per unit | $(10) | $(34.5) |
| Contribution margin per unit | $12.75 | $20.5 |
| Pounds of scarce raw material per unit | 3 | 5 |
| Contribution margin per pound | $4.25 ($12.75/3) | $4.1 ($20.5/5) |
The answer is Simple Product.
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Nicholas, Inc. has provided the following unit data for
review:
Simple
Product Advanced
Product
Selling
price &n
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