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8.2 Cadence Company manufactures three products which have become increasingly popular. The company's employees and equipment are used to produce all three products. Currently, Cadence

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8.2 Cadence Company manufactures three products which have become increasingly popular. The company's employees and equipment are used to produce all three products. Currently, Cadence has the capacity of 25,000 direct labor hours per year. It's fixed manufacturing overhead costs total $20,000, and its variable overhead costs are $3 per unit. The following data is also available: Basic Fancy Luxury $23.00 $33.00 $53.00 $8.00 $12.50 $24.00 Direct materials /unit $8.00 $12.00 $17.00 Demand (in units)20,000 8,000 3,000 Sales price /unit Direct labor /unit A. Calculate the contribution margin per unit for each product. B. Calculate the direct labor hours required per unit for each product. Assume a direct labor rate of $10 per hour. C. Calculate the contribution margin per direct labor hour for each product. D. If Cadence can't expand its direct labor capacity beyond 25,000 DL hours, what is the most profitable sales mix in units? What is the contribution margin at the most profitable sales mix? Show your calculations E

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