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Tanek Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the...

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Question

Accounting

Tanek Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Tanek is currently operating at full capacity with limited machine time. Sales and production information relevant to each model follows.

Product

Economy

Standard

Deluxe
Selling price $41 $69 $137
Variable costs and expenses $22 $27 $63
Machine hours required 0.5 0.8 1.6

Calculate contribution margin per unit.

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