Question
Hanson Corp. produces three products, and is currently facing a labor shortage only 3,100 hours are available this month. The selling price, costs, and labor
Hanson Corp. produces three products, and is currently facing a labor shortage only 3,100 hours are available this month. The selling price, costs, and labor requirements of the three products are as follows:
| Product A | Product B | Product C | ||||
| Selling price | $ | 72.00 | $ | 62.00 | $ | 68.00 |
| Variable cost per unit | $ | 49.00 | $ | 20.00 | $ | 40.00 |
| Direct labor hours per unit | 2.6 | 4.0 | 3.0 | |||
What is the contribution margin per unit for each product?
What is the contribution margin per direct labor hour for each product?
Assume Hanson has unlimited demand for each product. Which product should Hanson focus on producing?
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Auditing And Systems Exam Questions And Explanations Comprehensive Covarage Of Auditing And Systems Topics
Authors: Gleim, Hillison
22nd Edition
1618544284, 978-1618544285
