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A company produces three products, and is currently facing a labor shortage; only 3,080 labor hours are available this month. The selling prices, costs,
A company produces three products, and is currently facing a labor shortage; only 3,080 labor hours are available this month. The selling prices, costs, and labor requirements of the three products are as follows Sales price Variable cost per unit Direct labor hours per unit Product A Product B Product C $ 70.00 $ 47.00 $ 54.00 $ 18.00 $ 64.00 $38.00 2.4 3.8 2.8 Required: a. What is the contribution margin per unit for each product? b. What is the contribution margin per machine hour for each product? c. Assume there is unlimited demand for each product. Which product should the company focus on producing? Complete this question by entering your answers in the tabs below. Required A Required B Required C What is the contribution margin per unit for each product? Contribution Margin per Unit Product A Product B Product C Required B>
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