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performed by each service outlet to meet its target net income per
outlet?
E6-12
Dalton Inc. produces and sells three products. Unit data concerning
each product is shown below.
Product
D

E

F

Selling price

$200 $300 $250

Direct labor costs

30

80

35

Other var iable costs

95

80

145

The company has 2,000 hours of labor available to build inventory in
anticipation of the company's peak season. Management is trying to
decide which product should be produced. The direct labor hourly rate
is $10.
Instructions
A. Determine the number of direct labor hours per unit.
B. Determine the contribution margin per direct labor hour.
C. Determine which product should be produced and the total
contribution margin for that product.
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ACC 560 Week 4 Quiz 2 (Chapter 4)

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