Markov Fireworks Produces Two Products,spinners and Sparklers

question 61

Essay

Markov Fireworks produces two products,spinners and sparklers.Spinners sell for $4.50 per unit; sparklers sell for $6.50 per unit.Variable costs for spinners and sparklers are respectively,$3.50 and $3.00.There are 3,600 direct labor hours per month available for producing one of the two products.Fixed manufacturing overhead cost is allocated at $1,000 per month.Spinners require 2 direct labor hours and sparklers require 5 direct labor hours.
Compute the following:
A.Contribution margin per unit for each product.
B.Contribution margin per direct labor hour for each product.
C.The total number of products produced if only that product is produced each month.
D.Income for a month if only one product is produced and total production is sold.

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Definitions:

Human Capital

The economic value of a worker's experience and skills, including education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.

Beta Over Time

A metric that evaluates the volatility of an asset or portfolio in comparison to the market as a whole, observed across different time periods.

Arbitrage

The practice of buying and selling the same asset in different markets to profit from price discrepancies.

Law Of One Price

An economic theory that suggests the price of identical goods in different markets must be the same after exchange rate adjustments.