ACC 560 Week 4 Quiz 2 ( Chapter 4 )
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 . 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 )