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Hanson Corp. produces three products, and is currently facing a labor shortage only 3,150 hours are available this month. The selling price, costs, and labor
Hanson Corp. produces three products, and is currently facing a labor shortage only 3,150 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 $ 82.00 $ 54.00 3.1 Product B $71.00 $ 25.00 4.5 Product c $ 82.00 $ 45.00 3.5 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 C Product A Product B
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