Throughtput

Hi

Could you please me how the labour hours per unit is worked, to work out the contribution per hour. Please see the question below,

CSC Co is a health food company producing and selling three types of high-energy products: cakes, shakes and
cookies, to gyms and health food shops. Shakes are the newest of the three products and were first launched three
months ago. Each of the three products has two special ingredients, sourced from a remote part the world. The first
of these, Singa, is a super-energising rare type of caffeine. The second, Betta, is derived from an unusual plant
believed to have miraculous health benefits.
CSC Co’s projected manufacture costs and selling prices for the three products are as follows:
Cakes Cookies Shakes
Per unit $ $ $
Selling price 5·40 4·90 6·00
Costs:
Ingredients:
Singa ($1·20 per gram) 0·30 0·60 1·20
Ingredients: Betta ($1·50 per gram) 0·75 0·30 1·50
Other ingredients 0·25 0·45 0·90
Labour ($10 per hour) 1·00 1·20 0·80
Variable overheads 0·50 0·60 0·40
––––– –––––
Contribution 2·60 1·75 1·20

For each of the three products, the expected demand for the next month is 11,200 cakes, 9,800 cookies and 2,500 shakes.The total fixed costs for the next month are $3,000.
CSC Co has just found out that the supply of Betta is going to be limited to 12,000 grams next month. Prior to this, CSC Co had signed a contract with a leading chain of gyms, Encompass Health, to supply it with 5,000 shakes each month, at a discounted price of $5·80 per shake, starting immediately. The order for the 5,000 shakes is not included in the expected demand levels above.

Thanks

Jefzen2610