Question
Castor Corporation produces three products, and is currently facing a labor shortage - only 13,800 hours are available this month. The selling prices, costs, labor
Castor Corporation produces three products, and is currently facing a labor shortage - only 13,800 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 | $ 230.00 | $ 210.00 | $ 220.00 |
| Variable cost per unit | $ 161.00 | $ 84.00 | $ 154.00 |
| Direct labor hours per unit | 1.50 | 3.00 | 2.00 |
| Demand (units) | 4,600 | 9,200 | 2,300 |
What is the total contribution margin if Castor prioritizes production according to its limited resources?
Multiple Choice
$728,640
$607,200
$485,760
$1,457,280
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cost Accounting And Financial Management For Construction Project Managers
Authors: Len Holm
1st Edition
1138550655, 978-1138550650
