Question
Castor Corporation produces three products, and is currently facing a labor shortage - only 6,000 hours are available this month. The selling prices, costs, labor
Castor Corporation produces three products, and is currently facing a labor shortage - only 6,000 hours are available this month. The selling prices, costs, labor requirements, and demand of the three products are as follows:
| Product A | Product B | Product C | |
| Sales price | $ 100.00 | $ 80.00 | $ 90.00 |
| Variable cost per unit | $ 70.00 | $ 32.00 | $ 63.00 |
| Direct labor hours per unit | 1.50 | 3.00 | 2.00 |
| Demand (units) | 2,000 | 4,000 | 1,000 |
What is the total contribution margin if Castor prioritizes production according to its limited resources?
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Integrated Accounting For Windows
Authors: Dale A. Klooster, Warren Allen
5th Edition
0324312490, 9780324312492
