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A company produces three products, and is currently facing a labor shortage; only 4,300 hours are available this month. The selling prices, costs, labor
A company produces three products, and is currently facing a labor shortage; only 4,300 hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Sales price Variable cost per unit Direct labor hours per unit Demand (units) Required: Product A $ 70.00 Product B $ 40.00 Product C $ 51.00 $ 19.00 $ 49.00 $ 45.00 1.7 1,700 2.8 2.1 1,500 1,700 a. In what order should the company prioritize production of the products? b. How many of each product should be produced during the labor shortage to maximize profit? c. What is the total contribution margin if production is prioritized according to its limited resources? Complete this question by entering your answers in the tabs below. Required A Required B Required C In what order should the company prioritize production of the products? Required D Juction is prioritized according to its limited resources? Complete this question by entering your answers in the tabs below. Required A Required B Required C How many of each product should be produced during the labor shortage to maximize profit? Note: Leave no cells blank - be certain to enter "0" wherever required. Do not round your intermediate calculations. Round your answers to the nearest whole number. Product A Number of products Product B Product C What is the total contribution margin if production is prioritized according to its limited resources? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the total contribution margin if production is prioritized according to its limited resources? Note: Round your intermediate calculations to the nearest whole number and final answer to the nearest dollar amount. Total Contribution Margin
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