Answered

Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Connect with a community of experts ready to help you find accurate solutions to your questions quickly and efficiently. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

Product DGH has a monthly demand of 5,000 units. Its contribution margin is $18 per unit and $36 per direct labor hour. Product RBG has a monthly demand of 4,000 units. It's contribution margin is $15 per unit and $60 per direct labor hour. If the company only has 1,500 direct labor hours available, the company should produce _______________ units of Product DGH _____________ and units of Product RBG.

Sagot :

Talanat
A) 1,000

The remaining 500 hours can be used to make 1,000 units of DGH (36/18 = 2 units per hour X 500 hours left of the 1,500

B) 4,000

RBG has the highest CM per hour and requires 1,000 hours to meet demand. (60/15 = 4) 4,000/4 = 1,000 1,500-1,000 = 500
We appreciate your time. Please come back anytime for the latest information and answers to your questions. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.