University Of Indianapolis Operations And Supply Chain Management Assignment Help -Calibri Company

Question - Calibri Company produces three products: F, G, and H. The selling price, variable costs, and
contribution margin for one unit of each product follow:

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Calibri Company produces three products: F, G, and H. The selling price, variable costs, and
contribution margin for one unit of each product follow:

Product
F G H
Selling price $40 $110 $50
Variable costs:
Direct materials $16 $25 $20
Direct labor $11 $20 $12
Variable manufacturing $10 $10 $8
overhead
Total variable costs $37 $55 $40
Contribution margin $3 $55 $10
Contribution margin ratio 7.5% 50% 20%

One of two major machines used to produce these products has broken down and a new one is on
backorder, so the company is down to one machine. Product ...Read More F takes 0.20 machine hours to produce
one unit, Product G takes 11 machine hours to produce one unit, and Product H takes 2.5 machine
hours. There are 1,000 machine hours available on the new machine.

a. W hat is the amount of contribution margin that will be obtained per machine hour on each product?
b. W hich product would you recommend that the company work on next week ' the orders for product
F, product G or product H? Show your computation ...Read Less

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