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Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company is currently facing a labor shortage; only
Hydroflask water bottles produces three products, large mouth, small mouth and mini mouth water bottles. The company is currently facing a labor shortage; only 3,300 hours are available this month. The selling prices, costs, labor requirements, and demand for the three products are as follows: Sales price: Variable cost per unit. Direct labor hours per unit Demand (units) Large Mouth (Product A) $ 62.00 $43.00 1.8 1,600 Small Mouth (Product B) $ 39.00 $ 20.00 2,600 Complete this question by entering your answers in the tabs below. Required: a. In what order should Hydroflask prioritize production of the products? b. How many of each product should be produced during the labor shortage to maximize profit? c. What is the total contribution margin if Hydroflask prioritizes production according to its limited resources? Required A Required B Required C In what order should Hanson prioritize production of the products? $ 50.00 $ 40.00 1.7 1,100
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