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 | $ 38 | $ 70 | $ 44 |
| Variable cost | $ 26 | $ 45 | $ 32 |
| Labor hours required | 1 | 5 | 3 |
Assume that Micro has 2,200 total labor hours available and the demand for each of the products is 700 units.
What is the maximum contribution margin Micro can generate given this labor hour shortage?
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Information Technology Audit Handbook
Authors: Doug Dayton
1st Edition
0136143148, 978-0136143147
