Question
Micro Corporation manufactures three products; A, B, and C. Because of a recent lack of skilled labor, the corporation has a shortage of available labor
Micro Corporation manufactures three products; A, B, and C. Because of a recent lack of skilled labor, the corporation has a shortage of available labor hours. The following per unit data relates to the three products of the corporation:
| Product A | Product B | Product C | |
|---|---|---|---|
| Selling price | $ 32 | $ 55 | $ 56 |
| Variable cost | $ 23 | $ 30 | $ 26 |
| Labor hours required | 1 | 5 | 3 |
Assume that Micro has 2,600 total labor hours available and the demand for each of the products is 800 units.
What is the maximum contribution margin Micro can generate given this labor hour shortage?
Multiple Choice
-
$24,000
-
$25,800
-
$24,900
-
$19,200
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NHS Audit Committee Handbook Practical Guides
Authors: Governance And Audit Committee
3rd Edition
1904624839, 978-1904624837
