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MANAGERIAL ACCOUNTING HANDOUT PROBLEM 11 Score Name Section Problem (10 points). Farrell Manufacturing Company produces several products that are used by hospitals. Information concerning these

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MANAGERIAL ACCOUNTING HANDOUT PROBLEM 11 Score Name Section Problem (10 points). Farrell Manufacturing Company produces several products that are used by hospitals. Information concerning these products is attached below Since the products are manufactured using a highly technical process, workers cannot be casily trained and production is constrained by the number of labor hours available. The company has 50,000 direct labor hours available per year and each worker is paid an average of $20 per hour. REQUIRED: Calculate the contribution margin per unit for each product. 2 Calculate the contribution margin per unit of scarce resource. (3 Show how you would allocate the company's production capacity among the various products in order to maximize the company's profits. appropriate supporting computations to justify your answer Provide

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