Dvorak Music produces two durable music stands: Stand A requires 6 labor hours and stand B requires
Question:
Dvorak Music produces two durable music stands:
Stand A requires 6 labor hours and stand B requires 3 labor hours. The company has only 350 available labor hours per week. Further, the company can sell all it can produce of either product.
Required
a. Which stand(s) should the company produce?
b. What would be the incremental benefit of obtaining 15 additional laborhours?
Transcribed Image Text:
Stand A $90 30 $60 Stand B $80 Selling price Less variable costs Contribution margin $36
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a Stand A Stand B Selling price 90 80 Variable costs 30 44 Contribution margin 60 3...View the full answer
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