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Hanson Corp. produces three products, and is currently facing a labor shortage-only 3,000 hours are available this month. The selling price, costs, and labor requirements
Hanson Corp. produces three products, and is currently facing a labor shortage-only 3,000 hours are available this month. The selling price, costs, and labor requirements of the three products are as follows: Selling price Variable cost per unit Direct labor hours per unit Product A $ 50.00 $ 35.00 Product B $ 30.00 $ 10.00 Product C $ 40.00 $ 30.00 1.5 a. What is the contribution margin per unit for each product? Product A Product B Product C Contribution Margin per Unit S 15 $ 20 S 10 cimal laces.) b. What is the contribution margin per direct labor hour for each product? Product A Product B Product C Contribution Margin per Direct Labor Hour $ 10.00 s 6.67 $ 6.00 b. What is the contribution margin per direct labor hour for each product? (Round your answers to 2 decimal pl oduct A S Product A Product B Product C Contribution Margin per Direct Labor Hour 10.00 $ 6.67 $ 6.00 c. Assume Hanson has unlimited demand for each product. Which product should Hanson focus on producing? Product C Product B Product A
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