1、 16. (a.) The product to emphasize can be determined by computing the contribution margin per unit of the scarce resource, which in this case is grinding machine time. Product J K L Selling price $80 $60 $90 Variable costs 50 40 55 Contribution margin $30 $20 $35 Grinding machine time 10 min. 5 min.
2、 7 min. Contribution margin per minute $3.00 $4.00 $5.00 Product L should be emphasized because it has the greatest contribution margin per unit of the scarce resource. (b.) If additional grinding machine time would be used to produce more of Product L, the time would be worth 60 x $5 = $300 per hou
3、r. 17.(a.) & (b.) Product X Product Y Sales value after further processing $40,800 $54,200 Costs of further processing 11,600 25,300 Benefit of further processing 29,200 28,900 Less: Sales value at split-off point 32,000 28,000 Net advantage (disadvantage) ($ 2,800) $ 900 (c.) & (d.) Minimum selling price at split-off . $29,200 $28,900
