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8 The following information applies to the products of Benson Company. Product Product Selling price per unit Variable cost per unit $18 15 $16 Identify
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The following information applies to the products of Benson Company. Product Product Selling price per unit Variable cost per unit $18 15 $16 Identify the product that should be produced or sold under each of the following constraints. Consider each constraint separately, Required a. One unit of Product A requires 1 hour of labor to produce, and one unit of Product B requires 5 hours of labor to produce. Due to labor constraints, demand is higher than the company's capacity to make both products. b. The products are sold to the public in retail stores. The company has limited floor space and cannot stock as many products as it would like. Display space is available for only one of the two products. Expected sales of Product A and Product Bare 14,000 units and 13,000 units, respectively. c. The maximum number of machine hours available is 43,000. Product A uses 3 machine hours, and Product Buses 10 machine hours. The company can sell all the products it produces Complete this question by entering your answers in the tabs below. Required A Required B Required C One unit of Product A requires 1 hour of labor to produce, and one unit of Product B requires 5 hours of labor to produce. Due to labor constraints, demand is higher than the company's capacity to make both products. (Round your answers to 2 decimal places) Product A Products Contribution margin per labor hour Which product should be produced? Required a. One unit of Product A requires 1 hour of labor to produce, and one unit of Product B requires 5 hou labor constraints, demand is higher than the company's capacity to make both products. b. The products are sold to the public in retail stores. The company has limited floor space and canna would like. Display space is available for only one of the two products. Expected sales of Product A and 13,000 units, respectively. c. The maximum number of machine hours available is 43,000. Product A uses 3 machine hours, and hours. The company can sell all the products it produces. Complete this question by entering your answers in the tabs below. Required A Required B Required C The products are sold to the public in retail stores. The company has limited floor space and cannot stoch as it would like. Display space is available for only one of the two products. Expected sales of Product A 14,000 units and 13,000 units, respectively. Product A Product B Total contribution margin Which product should be sold? Step by Step Solution
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