I know the answer is B. 31.00 but I don't know why. Please show work!

Assume that a company makes three productsProduct A, Product B, and Product C-and provides the following information with respect to those products: Product A $ 70 Product B $ 75 Product C $ 85 29 Selling price Variable costs per unit: Direct materials Direct labor Variable overhead Total variable cost per unit Contribution margin per unit 16 40 20 32 24 2 4 3 58 57 55 $ 12 $ 18 $ 30 The company incurs total fixed costs of $50,000. The maximum demand for each of its products is 600 units. It pays a direct labor wage rate of $16 per hour. The company has only 1,100 direct labor-hours available for production. Assuming the company has made optimal use of its 1,100 direct labor-hours, what is the maximum hourly rate the company should be willing to pay for additional labor-hours of capacity? Multiple Choice $28.00 $31.00 $24.00 $20.80