Question
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product A Sales price
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product A Sales price $40.00 Product B $50.00 Product C $80.00 Variable costs per unit Fixed costs per unit 21.50 21.00 41.50 8.00 8.00 8.00 Required number of labor hours 1.25 2.00 2.50 Cordova currently is limited to 45,000 labor hours per month. Required: Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour. (Round your answers to 2 decimal places.) Contribution Margin Product A CM per DL hour Product B Product C CM per DL hour CM per DL hour Which product would be Cordova's first choice to produce? Product A O Product B O Product C
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