Duo Company manufactures two products, Uno and Dos. Contribution margin data follow, Uno $16.00 Dos $30.00 Unit sales Le

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Duo Company Manufactures Two Products Uno And Dos Contribution Margin Data Follow Uno 16 00 Dos 30 00 Unit Sales Le 1 (21.95 KiB) Viewed 28 times

Duo Company manufactures two products, Uno and Dos. Contribution margin data follow, Uno $16.00 Dos $30.00 Unit sales Less variable cost: Direct material Direct labor Variable overhead Variable selling and administrative cost Total variable cost Unit contribution margin $ 8.00 1.00 1.25 .75 $11.00 $ 5.00 $ 5.ee 6.00 6.70 .30 $18.ee $12.00 Duo company's production process uses highly skilled labor, which is in short supply. The same employees work on both products and earn the same wage rate. Required: 1. Calculate the contribution margin per scarce resource for each of the products assuming an arbitrary time period for which direct laborers earn $1.00 per unit. 2. Which of Duo Company's products is most profitable?