Question
Darren Company produces three products with the following costs and selling prices: Product X Y Z Selling price per unit $ 230 $ 108 $
Darren Company produces three products with the following costs and selling prices:
| Product | |||||||||||
| X | Y | Z | |||||||||
| Selling price per unit | $ | 230 | $ | 108 | $ | 130 | |||||
| Variable costs per unit | 138 | 54 | 78 | ||||||||
| Contribution margin per unit | $ | 92 | $ | 54 | $ | 52 | |||||
| Direct labor hours per unit | 4 | 2 | 2 | ||||||||
| Machine hours per unit | 5 | 7 | 4 | ||||||||
If Darren has a limit of 23,800 direct labor hours but no limit on units sold or machine hours, then the ranking of the products from the most profitable to the least profitable use of the constrained resource is:
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Survey of Accounting
Authors: Thomas P. Edmonds, Frances M. McNair, Philip R. Olds, Bor Yi
3rd Edition
978-1259683794, 77490835, 1259683796, 9780077490836, 978-0078110856
