Zap Video Inc. produces two basic types of video games, Clash and Slash. Pertinent data follow (DLH = direct labor hour):There is insufficient labor capacity (i.e., DLHs) in the plant to meet the combined demand for both Clash and Slash.
Both products are produced through the same production departments.
In view of the labor shortage, which of the two products is most profitable, and how much is the contribution margin, per DLH?
A) Slash, $23.00.
B) Clash, $18.00.
C) Slash, $11.50.
D) Slash, $11.00.
E) Clash, $10.50.

Question

Zap Video Inc. produces two basic types of video games, Clash and Slash. Pertinent data follow (DLH = direct labor hour):There is insufficient labor capacity (i.e., DLHs) in the plant to meet the combined demand for both Clash and Slash.
Both products are produced through the same production departments.
In view of the labor shortage, which of the two products is most profitable, and how much is the contribution margin, per DLH?
A) Slash, $23.00. 
B) Clash, $18.00. 
C) Slash, $11.50. 
D) Slash, $11.00. 
E) Clash, $10.50.

Quizplus · Accepted Answer

The Answer of Zap Video Inc. produces two basic types of video games, Clash and Slash. Pertinent data follow (DLH = direct labor hour):There is insufficient labor capacity (i.e., DLHs) in the plant to meet the combined demand for both Clash and Slash.
Both products are produced through the same production departments.
In view of the labor shortage, which of the two products is most profitable, and how much is the contribution margin, per DLH?
A) Slash, $23.00. 
B) Clash, $18.00. 
C) Slash, $11.50. 
D) Slash, $11.00. 
E) Clash, $10.50.