Assume Fender produces only three guitars: the Stratocaster, Dreadnought and Telecaster. A limitation of $720$ labor hours per week prevents Fender from meeting the sales demand for these products. Product information is as follows:

Stratocaster Dreadnought Telecaster

Unit selling price $$960$ $$600$ $$1,260$

Unit variable costs $(600)(300)(1,080)$

Unit contribution margin $$360$ $$300$ $$180$

Labor hours per unit $362436$

Required

Determine the weekly contribution from each product when total labor hours are allocated to the product with the highest.

$1.$ Unit selling price.

$2.$ Unit contribution margin.

$3.$ Contribution per labor hour.

$($Hint: Each situation is independent of the others.$)$

Highest

Unit

Selling Price Highest

Contribution

per Unit Highest

Contribution

per Labor Hour Limited Resources

information is as follows:

Required

Determine the weekly contribution from each product when total labor hours are allocated to the product with the highest.

Unit selling price.

Unit contribution margin.

Contribution per labor hour.

$($Hint: Each situation is independent of the others.$)$

Telecaster

Statocaster

Dreadnought

Labor hours available

Labor hours per unit

Weekly production

Unit contribution margin

Weekly contribution