Iddleburg Inc produces 2 lines of mobile homes: Double wide and single wide. Unit cost and revenue data pertaining to each product are shown below: Selling price: Double Wide= $65,000 Single Wide= $35,000 Total variable costs Double wide= $45,000 single = 20,000 Direct Labor hours required Double= 500 single = 300 Machine hours required double = 250 single = 200 Contribution margin per labor hour double = ? Single =? Contribution margin per machine hour double=? single = ? Fixed costs are $100,000 a month and shift foreman is named Zeke Please complete the above table calculating the contribution margin per potential limiting factor.
PLEASE ANSWER THE BELOW QUESTIONS:
1.All other factors being equal, if Middleburg's production capacity is constrained by limited direct labor hours, which line of homes should it produce?
2.All other factors being equal, if middleburg's production capacity is contrained by limited machine hours, which line of homes should it produce?