Question

Calculate the contribution margin per scarce resource for each of the products assuming an arbitrary time period for which direct laborers earn $1.00 per unit.

Answer 1

For Uno = $5

For Dos = $3

Explanation:

The computation of contribution margin per scarce is shown below:-

Particulars Uno Dos

Contribution margin per unit $5 $15

Direct labor hours per unit 1 5

($1 ÷ $1) ($5 ÷ $1)

Contribution margin per labor hour $5 $3

($5 ÷ $1) ($15 ÷ $5)

Hence, the same is to be considered