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 labour 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 labour hours and sparklers require 5 direct labour hours.
Required:
| 1. | Contribution margin per unit for each product. |
| 2. | Contribution margin per direct labour hour for each product. |
| 3. | The total number of products of each type that could be produced each month assuming the |
other product is not made.
| 4. | Income for a month for each product assuming that it is the only one produced and sold. |
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