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sales and provides a 40% contribution margin ratio. The company's
fixed costs are $15,600,000 (that is, $78,000 per service outlet).
Instructions
A. Calculate the dollar amount of each type of service that the
company must provide in order
B. The company has a desired net income of $52,000 per service outlet.
What is the dollar amount of each type of service that must be
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 variable 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.