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Hickman Corp. produces three products, and is currently facing a labor shortage - only 3,000 hours are available this month. The selling price, costs, labor

Hickman Corp. produces three products, and is currently facing a labor shortage - only 3,000 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows:

Product A

Product B

Product C

Selling price

$30.00

$40.00

$50.00

Variable cost per unit

$10.00

$30.00

$35.00

Direct labor hours per unit

3

2

1.5

Demand

2,000

500

1,000

a. In what order should Hickman prioritize production of the products?

b. How many of each product should be sold during the labor shortage to maximize profit?

c. What is the total contribution margin if Hanson prioritizes production according to its limited resources?

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