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Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Product A Product B
Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Product A Product B Product C $ Sales price $51.00 $ 61.00 108.00 Variable costs per unit 17.00 24.20 25.00 Fixed costs per unit 7.00 7.00 7.00 Required number of labor hours 2.00 2.50 4.00 Cordova currently is limited to 60,000 labor hours per month. Required: 1-a. Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each product. 1-b. Which product would be Cordova's first choice to produce? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each product. Note: Round your answers to 2 decimal places. Contribution Margin Product A $ 16,000.00 CM per labor hour Product B $ 10,000.00 CM per labor hour Product C $ 750.00 CM per labor hour < Required 1A Required 1B >
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