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Dulko Corporation Manufactures Two Styles of Clocks,a Mantle Clock and a Cuckoo

Question 159

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Dulko Corporation manufactures two styles of clocks,a Mantle Clock and a Cuckoo Clock.The following per unit data are available:
 Mantle Clock  Cuckoo Clock  Sale price $90$108 Variable costs $60$75 Machine hours required for 1 clock 12\begin{array} { l c c } & \text { Mantle Clock } & \text { Cuckoo Clock } \\\text { Sale price } & \$ 90 & \$ 108 \\\text { Variable costs } & \$ 60 & \$ 75 \\\text { Machine hours required for 1 clock } & 1 & 2\end{array}
Total fixed costs are $600,000 and Dulko can sell a maximum of 25,000 units of each style of lamp annually.Machine hour capacity is 40,000 hours per year.
A.Determine the contribution margin per unit for each type of clock.
B.Determine the contribution margin per machine hour for each type of clock.
C.Determine the number of units of each style of clock that Dulko should produce to maximize operating income.
D.What is the dollar amount of the maximum operating income as calculated in C above?

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Part A. \[\begin{array} { | l | l |l| } ...

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