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The company has a capacity of 5000 hours for the production of A or B products. The following data is available. Product A Product B
The company has a capacity of 5000 hours for the production of A or B products. The following data is available. Product A Product B Unit sales price 27$ 30$ Raw material per unit 9$ 7$ Direct labor (variable) 5$ 5$ Indirect manufacturing cost per unit variable 3$ 6.50$ Fixed indirect manufacturing cost per unit 7$ 5$ Production time per unit 2 hours 0.5 hours If the company chooses to produce only A, what is the total variable cost margin for product A under the constraint (5,000 hours)? 32 500 $ 50 000 $ No answer 100 000 $ 25 000 $
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