Selling price per unit is $30,variable costs per unit are $18,labour time per unit is 2 hours and labour hours are the limiting factor in production.Contribution margin per unit of limiting factor is:

Question

Quizplus · Accepted Answer

The contribution margin per unit is calculated as selling price minus variable costs, which is $30 - $18 = $12. Since labour time is the limiting factor and each unit requires 2 hours, the contribution margin per unit of limiting factor (per hour) is $12 / 2 = $6. However, the correct choice should be $6, but the options provided do not match this calculation.

Selling Price Per Unit Is $30,variable Costs Per Unit Are