Roberto, Incorporated manufactures products A and B. Both products have a contribution margin ratio of 40%. What is the contribution margin per unit of the constrained resource for product B, if labor time is the constrained resource? multiple choice $2 per minute $3 per minute $6 per minute $8 per minute

Respuesta :

The contribution margin per unit of the constrained resource for product B, if labor time is the constrained resource is $3 per minute.

Using this formula

Contribution margin per unit = Contribution per unit / Limiting Factor required per unit

Where:

Contribution per unit=$6

Limiting Factor required per unit=2

Let plug in the formula

Contribution margin per unit=$6/2

Contribution margin per unit=$3 per minute

Inconclusion  the contribution margin per unit of the constrained resource for product B, if labor time is the constrained resource is $3 per minute.

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