Exhibit 6-5
Estrada Incorporated Produces Two Different Products with the Following

Multiple Choice

Exhibit 6-5
Estrada Incorporated produces two different products with the following monthly data.
$\begin{array}{llcc}&\text { Charcoal } & \text { Gas } & \text { Total } \\&\text { Barbecues } & \text { Barbecues } &\\\text { Selling price per unit } & \$ 150 & \$ 600 & \\\text { Variable cost per unit } & \$ 60 & \$ 360 & \\\text { Expected unit sales } & 1,400 & 600 & 2,000 \\\text { Sales mix } & 70 \% & 30 \% & 100 \% \\\text { Fixed costs } & & & \$ 180,000\end{array}$

-Refer to Exhibit 6-5.Management believes that pushing sales of the Gas Barbecue would maximize company profits because of the high contribution margin per unit.However,only 20,000 labor hours are available each year and the Gas Barbecue requires 5 labor hours per unit while the Charcoal Barbecue requires 2 labor hours per unit.
If the company sells everything it produces,what is the contribution margin per unit of the constrained resource for the Gas Barbecue?

A) $98
B) $120
C) $48
D) $45
E) None of the answer choices is correct.