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Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A $42.00 19.20 4.00 1.50 Product B $52.00 13.25 4.00 2.50 Product c $82.00 35.20 4.00 3.00 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 $ 8,333.00 CM per DL hour Product A Product B $ 7,000.00 CM per DL hour Product C $ 5,000.00 CM per DL hour Which product would be Cordova's first choice to produce? O Product B O Product A Product C
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