What is the contribution margin per unit of constrained

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Question: Fishing Products Company produces three types of fishing poles: Light, Medium, and Heavy. The poles are produced in separate departments and sent to the quality testing department before being shipped. A labor-hour bottleneck has been identified in the quality testing department due to the high skill requirements of the job. Fishing Products would like to optimize its use of labor hours by producing the two most profitable fishing poles. Information for each pole follows: Quality Testing Labor-hours Price Variable Cost Light 2 $ 300 $170 Medium 3 500 200 Heavy 5 1,200 380 Refer to Exhibit 7-7. What is the contribution margin per unit of constrained resource for the Medium product?

Reference no: EM133609406

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