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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
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 1.5 Product B $ 30.00 $10.00 3 Product C $ 40.00 $ 30.00 2 a. What is the contribution margin per unit for each product? Contribution Margin per Unit Product A Product B Product C b. What is the contribution margin per direct labor hour for each product? (Round your answers to 2 decimal places.) Contribution Margin per Direct Labor Hour Product A Product B Product C C. Assume Hanson has unlimited demand for each product. Which product should Hanson focus on producing? Product A Product B Product C
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