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Castor Corp. produces three products, and is currently facing a labor shortage - only 3,000 hours are available this month. The selling price, costs, labor
Castor Corp. produces three products, and is currently facing a labor shortage - only 3,000 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows:
Product A | Product B | Product C | |
Selling price | 50 | 30 | 40 |
variable cost per unit | 35 | 10 | 30 |
direct labor hours per unit | 1.5 | 3 | 2 |
demand | 1000 | 2000 | 500 |
What is the total contribution margin if Castor Corp. prioritizes production according to its limited resources? $30,000
$25,000
$20,000
$60,000
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