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Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product A Product B Product
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows:
Product A | Product B | Product C | ||||
Sales price | $ | 50.00 | $ | 60.00 | $ | 90.00 |
Variable costs per unit | 16.40 | 11.25 | 24.40 | |||
Fixed costs per unit | 6.00 | 6.00 | 6.00 | |||
Required number of labor hours | 2.00 | 2.50 | 4.00 | |||
Cordova currently is limited to 60,000 labor hours per month. Required: Assuming an infinite demand for each of Cordovas products, determine contribution margin per direct labor hour. (Round your answers to 2 decimal places.)
Which product would be Cordova's first choice to produce?
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Product C
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Product B
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Product A
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