Two products use a constrained machine hour resource. Produc…

Two products use a constrained machine hour resource. Product A has contribution margin $18 per unit and requires 0.6 machine hours per unit. Product B has contribution margin $14 per unit and requires 0.3 machine hours per unit. If machine hours are limited, which product provides the higher contribution margin per machine hour?

Northline Snacks sells 180,000 cases per quarter but has cap…

Northline Snacks sells 180,000 cases per quarter but has capacity for 220,000 cases. Normal unit data: selling price $28; variable manufacturing cost $16; variable selling cost $5. A special order is offered for 25,000 cases at $20 each. For this order, variable selling costs will be $2 per case (special shipping is required, but commissions are avoided). Fixed costs do not change. What is the impact on quarterly operating income if the order is accepted?