FAUSTINO Inc. manufactures two products, MICHAEL and GABRIEL. Contribution margin per unit is determined as follows: MICHAEL GABRIEL Revenue P 130 P 80 Variable costs (70)_(38) Contribution margin 60 42 Total demand for MICHAEL is 8,000 units; and for GABRIEL, 16,000 units. Machine hours is a scarce resource. Only 42,000 machine hours are available during the year. MICHAEL requires 6 machine hours per unit while GABRIEL requires 3 machine hours per unit. How many units of MICHAEL should FAUSTINO Inc. produce?

FAUSTINO Inc. manufactures two products, MICHAEL and GABRIEL. Contribution margin per unit is determined as follows: MICHAEL GABRIEL Revenue P 130 P 80 Variable costs (70)_(38) Contribution margin 60 42 Total demand for MICHAEL is 8,000 units; and for GABRIEL, 16,000 units. Machine hours is a scarce resource. Only 42,000 machine hours are available during the year. MICHAEL requires 6 machine hours per unit while GABRIEL requires 3 machine hours per unit. How many units of MICHAEL should FAUSTINO Inc. produce?

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Description: Please help me with show all calculation thanku FAUSTINO Inc. manufactures two products, MICHAEL and GABRIEL.Contribution margin per unit is determined as follows:MICHAEL GABRIELP 130 P 80RevenueVariable costs (70)_(38)Contribution margin 60 42Total

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...

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