Question
ostner produces two product lines. Prices/costs per unit follow. W H Selling price $60 $45 Direct material $16 $12 Direct labor ($20/hour) $15 $10 Variable
ostner produces two product lines. Prices/costs per unit follow. "W" "H"
Selling price $60 $45
Direct material $16 $12
Direct labor ($20/hour) $15 $10
Variable overhead $13 $8
Demand for "W" is 213 units and "H"is 301 units
Costner has only 177 labor hours available
Given the constrained resource, what is the maximum contribution margin the company can attain if it uses the optimal sales mix?
Round only your final answer to the nearest dollar.
Hint: Consider the financial result if the company follows your recommendations on which line to produce first and how many they would be able to produce of the other product.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started