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b) What is the contribution margin per labor-hour for Product B?
c) What is the contribution margin per labor-hour for Product C?
To calculate the contribution margin per labor-hour for Product B and Product C, you need to know their respective contribution margins and the number of labor hours required to produce each product.
To find the contribution margin per labor-hour, follow these steps:
Step 1: Determine the contribution margin for each product:
The contribution margin represents the amount of revenue remaining after deducting the variable expenses associated with producing and selling the product. It is calculated per unit of the product.
Step 2: Determine the number of labor hours required to produce each product:
This information is typically provided in the context of the question or can be obtained from the company's data or records.
Step 3: Calculate the contribution margin per labor-hour:
Divide the contribution margin by the number of labor hours required to produce the product.
Let's go through the calculations for Product B and Product C separately:
b) To find the contribution margin per labor-hour for Product B:
1) Find the contribution margin for Product B.
2) Determine the number of labor hours required to produce Product B.
3) Divide the contribution margin by the number of labor hours.
c) To find the contribution margin per labor-hour for Product C:
1) Find the contribution margin for Product C.
2) Determine the number of labor hours required to produce Product C.
3) Divide the contribution margin by the number of labor hours.
Please provide the contribution margins and the number of labor hours for Product B and Product C so that I can help you with the calculations.