Handy Andy Company has limited direct labor hours of 4,000 hours per month for its employees. Handy Andy manufactures a standard entertainment center and a deluxe entertainment center. The standard and deluxe units have the following information:
Deluxe
Unit Data
$220
$280
Selling price
120
160
Variable costs
1.25
1.6
The contribution margin per unit of limited resource is:
Standard
Deluxe
75
80
80
75
60
75
80
60