Bell Company produces and sells three products (A, B, C). The following data relate to the three products. Management considers labor to be a fixed cost. Required:
1. Calculate the contribution per labor minute for each product.
2. Determine the best product mix. Assume there are five employees, and given time for breaks, training, and regular meetings, there are a total of 2,200 minutes available per day.

Question

Bell Company produces and sells three products (A, B, C). The following data relate to the three products. Management considers labor to be a fixed cost.  Required:
1. Calculate the contribution per labor minute for each product.
2. Determine the best product mix. Assume there are five employees, and given time for breaks, training, and regular meetings, there are a total of 2,200 minutes available per day.

Quizplus · Accepted Answer

The Answer of Bell Company produces and sells three products (A, B, C). The following data relate to the three products. Management considers labor to be a fixed cost.  Required:
1. Calculate the contribution per labor minute for each product.
2. Determine the best product mix. Assume there are five employees, and given time for breaks, training, and regular meetings, there are a total of 2,200 minutes available per day.

Bell Company Produces and Sells Three Products (A, B, C)