Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

Exercise 58

Superior Instruments produces two models of instruments. Information for each model is as follows:
The demand for either product is sufficient to keep the plant operating at full capacity (15,000 machine-hours per month). Assume that only one product is to be produced in the future.
Instructions
a. Prepare a schedule showing the contribution margin per machine-hour for each product.
b. Explain your recommendation as to which of the two products should be discontinued.