Markov Fireworks produces two products,spinners and sparklers.Spinners sell for $4.50 per unit; sparklers sell for $6.50 per unit.Variable costs for spinners and sparklers are respectively,$3.50 and $3.00.There are 3,600 direct labor hours per month available for producing one of the two products.Fixed manufacturing overhead cost is allocated at $1,000 per month.Spinners require 2 direct labor hours and sparklers require 5 direct labor hours.
Compute the following:
A.Contribution margin per unit for each product.
B.Contribution margin per direct labor hour for each product.
C.The total number of products produced if only that product is produced each month.
D.Income for a month if only one product is produced and total production is sold.

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The Answer of  Markov Fireworks produces two products,spinners and sparklers.Spinners sell for $4.50 per unit; sparklers sell for $6.50 per unit.Variable costs for spinners and sparklers are respectively,$3.50 and $3.00.There are 3,600 direct labor hours per month available for producing one of the two products.Fixed manufacturing overhead cost is allocated at $1,000 per month.Spinners require 2 direct labor hours and sparklers require 5 direct labor hours.
Compute the following:
A.Contribution margin per unit for each product.
B.Contribution margin per direct labor hour for each product.
C.The total number of products produced if only that product is produced each month.
D.Income for a month if only one product is produced and total production is sold.

Markov Fireworks Produces Two Products,spinners and Sparklers