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Assume Fender produces only three guitars: the Stratocaster, Dreadnought and Telecaster. A limitation of 7 2 0 labor hours per week prevents Fender from meeting
Assume Fender produces only three guitars: the Stratocaster, Dreadnought and Telecaster. A limitation of 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 $ $ $
Unit variable costs
Unit contribution margin $ $ $
Labor hours per unit
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.
Highest
Unit
Selling Price Highest
Contribution
per Unit Highest
Contribution
per Labor Hour
Answer
Answer
Answer
Labor hours available Answer
Answer
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Labor hours per unit Answer
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Weekly production Answer
Answer
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Unit contribution margin Answer
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Weekly contribution Answer
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