Question
Novak Corporation produces and sells three products. Unit data concerning each product is shown below. Product X Y Z Selling price $220 $370 $344
Novak Corporation produces and sells three products. Unit data concerning each product is shown below. Product X Y Z Selling price $220 $370 $344 Direct labor costs 75 105 90 Other variable costs 130 160 122 The company has 2,000 hours of labor available to build inventory in anticipation of the company's peak season. Management is trying to decide which product should be produced. The direct labor hourly rate is $15. Determine the number of direct labor hours per unit. (Round answers to 1 decimal place, e.g. 5.5.) Product X Product Y Product Z eTextbook and Media hours per unit hours per unit hours per unit Determine the contribution margin per direct labor hour. (Round answers to 2 decimal place, e.g. 5.5.) Contribution margin per direct labor hour eTextbook and Media X Product Y Determine which product should be produced and the total contribution margin for that product. Total contribution margin $
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