NOTE: THIS IS A COST ACCOUNTING PROBLEM

PRODUCT MIX PRIORITIZATION WITH CONSTRAINTS: Franklin Glass Works produces three products, and is currently facing a labor shortage only 3,000 labor hours are available this month. The selling price, variable costs, labor requirements, and demand for the three products are as follows:

	Product A	Product B	Product C
Selling price per unit	$50	$30	$40
Variable cost per unit	$35	$10	$30
Direct labor hours per unit	1.5	3	2
Demand	1,000	2,000	500

In what order should Franklin prioritize production of the products?

How many of each product should be sold during the labor shortage to maximize profits?

What is the total contribution margin if Franklin prioritizes production according to its limited resources?