What is contribution margin per unit of constrained resource

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Reference no: EM131977314

Problem

Southside Company produces three types of baseball gloves: child, teen, and adult. The gloves are produced in separate departments and sent to the quality testing department before being packaged and shipped. A machine-hour bottleneck has been identified in the quality testing department. Southside would like to optimize its use of machine hours by producing the two most profitable gloves. The machine hours required for each glove follow: Child Glove 25/100 or (.25) machine hours; price $15; variable cost $4 Teen Glove 41/100 machine hours; price $20; variable cost $9 Adult glove 23/100 machine hours; price $35; avriable cost $15. What is the contribution margin per unit of constrained resource for the teen glove?

Reference no: EM131977314

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