WebLink Manufacturer was a computer manufacturer company. Currently, the company wish to add a new production line in th

[answerhappygod]

Weblink Manufacturer Was A Computer Manufacturer Company Currently The Company Wish To Add A New Production Line In Th 1 (56.61 KiB) Viewed 31 times

WebLink Manufacturer was a computer manufacturer company. Currently, the company wish to add a new production line in their factory, either to produce Hardisk or computer monitor. TABLE 6 was the estimated revenue and cost information for both products. As a finance executive of the company, you are required to suggest to the management which product should they produce. Every month, the factory has 450 machine hours that could be used to produce the products. TABLE 6: Revenue and cost information (per unit) Hardisk Monitor Factory Price 250.00 800.00 Total Variable Costs 175.00 560.00 Contribution Margin 75.00 240.00 Total Fixed Costs 55,500.00 55,500.00 Machine hour required 0.4 1.5 Contribution Margin per Machine hour 187.50 160.00