Zap Video Inc

question 90

Multiple Choice

Zap Video Inc. produces two basic types of video games, Clash and Slash. Pertinent data follow (DLH = direct labor hour) :There is insufficient labor capacity (i.e., DLHs) in the plant to meet the combined demand for both Clash and Slash.
Both products are produced through the same production departments.
In view of the labor shortage, which of the two products is most profitable, and how much is the contribution margin, per DLH?

• A) Slash, $23.00.
• B) Clash, $18.00.
• C) Slash, $11.50.
• D) Slash, $11.00.
• E) Clash, $10.50.

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Definitions:

Exclusive Contract System

Refers to a historical practice in the film industry where actors, directors, and other talent were signed under contract to a single studio, limiting their ability to work with others.

Olivia de Havilland

A British-American actress famous for her roles during the Golden Age of Hollywood, including that in "Gone with the Wind" (1939).

Typecast

The practice of casting an actor in the same kind of role repeatedly, often limiting their opportunities to display a range of acting skills.

James Cagney

An iconic American actor, remembered for his energetic performances, distinctive vocal style, and roles in classic gangster and musical films.