At the present time, demand for each of the company's products far exceeds its capacity to produce them. Thus, management is trying to determine which of its games to concentrate on next week in filling its backlog of orders. Gunst's direct labor rate is $12 per hour, and only 1,000 hours of direct labor are available each week. Determine the maximum total contribution margin the company can make by its best use of the 1,000 available hours

Explanation:

                                                       AndroidBio-MutantCyclops

Direct labor per unit                                       48         24             60

Divide by Direct labor rate                       12         12             12

Direct labor hours per unit                        4           2               5

                                                               Android  Bio-Mutant  Cyclops

Selling price                                            100         77              125

Less: Variable costs    

Direct labor                                              48          24                60

Direct materials                                       9           8                16

Variable overhead                                        7           4                  9

Total Variable costs                                       64           36                 85

Unit Contribution margin                               36           41                 40

Divide by Direct labor hours per unit         4            2                  5

Contribution margin per labor hour               9.00          20.50        8.00

As shown in the above estimates, producing Bio-mutant is much more lucrative

Total contribution margin20500=1000 * 20.5

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.