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11 July, 00:13

Roberto, Inc. manufactures products A and B. Both products have a contribution margin ratio of 40%. What is the contribution margin per unit of the constrained resource for product B, if labor time is the constrained resource

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  1. 11 July, 00:23
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    3 minutes

    Explanation:

    The computation of the contribution margin per unit of the constrained resource for product B is shown below:

    Contribution margin per unit is

    = Contribution margin per unit : lead time

    = 6 minutes : 2 minutes

    = 3 minutes

    We simply divided the contribution margin per unit from the lead time so that the contribution margin per unit for product B could come
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