Limited Resources Assume Fender produces only three guitars: the Stratocaster, Dreadnought and Telecaster. A limitation of $720$ labor hours per week prevents Fender from meeting the sales demand for these products. Product information is as follows: Stratocaster Dreadnought Telecaster Unit selling price $$1,152$ $$720$ $$1,512$ Unit variable costs $(720)(360)(1,296)$ Unit contribution margin $$432$ $$360$ $$216$ Labor hours per unit $362436$ Required Determine the weekly contribution from each product when total labor hours are allocated to the product with the highest. $1.$ Unit selling price. $2.$ Unit contribution margin. $3.$ Contribution per labor hour. $($Hint: Each situation is independent of the others.$)$ Highest Unit Selling Price Highest Contribution per Unit Highest Contribution per Labor Hour DreadnoughtStatocasterTelecaster DreadnoughtStatocasterTelecaster DreadnoughtStatocasterTelecaster Labor hours available Labor hours per unit Weekly production Unit contribution margin Weekly contribution Determine the opportunity cost the company will incur if management requires the weekly production of $20$ Telecasters. Hint: You want to maximize short$-$run profit. Think about which guitar is most profitable. $Answer