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Assume that a company makes three products-Product A. Product 8, and Product C-and provides the following Information with respect to those products: Product Products Product
Assume that a company makes three products-Product A. Product 8, and Product C-and provides the following Information with respect to those products: Product Products Product $ 70 3.75 $ 85 Selling price Variable costs per unit: Direct materials Direct labor Variable overhead Total variable cost per unit 28 24 16 48 2 58 $ 12 24 32 3 59 $ 16 55 $ 3e Contribution margin per unit The company Incurs total faxed costs of $50.000. The maximum demand for each of its products is 600 units. It pays a direct labor wage rate of $16 per hour. The company has only 2000 direct labor-hours available for production. Assuming the company has made optimal use of its 2.000 direct lapor-hours. What is the maximum hourly rate the company should be willing to pay for additional labor-hours of capacity Multiple Choice $38.00 $29.00 $20.00 O $24.00
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