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Product ABC has a contribution margin per unit of $10.00. Each unit of ABC requires 5 minutes of machine time and 10 minutes of labor time. Product XYZ has a contribution margin per unit of $15.00 and each unit requires 10 minutes of machine time and 5 minutes of labor time. If the company's constraint is labor hours, the contribution margin per unit of constraint for Product XYZ is $____________ per minute.

Sagot :

Answer:

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Explanation:

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Assuming the company's constraint is labor hours, the contribution margin per unit of constraint for Product XYZ is $1.50 per minutes.

Contribution margin per unit

Using this formula

Contribution margin=Product XYZ contribution margin per units/Machine time  

Where:

Product XYZ contribution margin per units=$15

Machine time=10 minutes

Let plug in the formula

Contribution margin=$15/10 minutes

Contribution margin=$1.50 per minutes

Inconclusion the contribution margin per unit of constraint for Product XYZ is $1.50 per minutes.

Learn more about contribution margin per unit here:https://brainly.com/question/15684424

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