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The following information applies to the products of Corbett Company. Selling price per unit. Variable cost per unit Product A $40 24 Product B
The following information applies to the products of Corbett Company. Selling price per unit. Variable cost per unit Product A $40 24 Product B $ 32 12 Identify the product that should be produced or sold under each of the following constraints. Consider each constraint separately. Required a. One unit of Product A requires 2 hours of labor to produce, and one unit of Product B requires 4 hours of labor to produce. Due to labor constraints, demand is higher than the company's capacity to make both products. b. The products are sold to the public in retail stores. The company has limited floor space and cannot stock as many products as it would like. Display space is available for only one of the two products. Expected sales of Product A and Product B are 8,000 units and 9,000 units, respectively. c. The maximum number of machine hours available is 40,000. Product A uses 2.50 machine hours, and Product B uses 4 machine hours. The company can sell all the products it produces. Complete this question by entering your answers in the tabs below. Required A Required B Required C One unit of Product A requires 2 hours of labor to produce, and one unit of Product B requires 4 hours of labor to produce. Due to labor constraints, demand is higher than the company's capacity to make both products. Contribution margin per labor hour Product A Product B Requirea a. One unit of Product A requires 2 hours of labor to produce, and one unit of Product B requires 4 hours of labor to produce. Due to labor constraints, demand is higher than the company's capacity to make both products. b. The products are sold to the public in retail stores. The company has limited floor space and cannot stock as many products as it would like. Display space is available for only one of the two products. Expected sales of Product A and Product B are 8.000 units and 9,000 units, respectively. c. The maximum number of machine hours available is 40,000. Product A uses 2.50 machine hours, and Product B uses 4 machine hours. The company can sell all the products it produces. Complete this question by entering your answers in the tabs below. Required A Required B Required C One unit of Product A requires 2 hours of labor to produce, and one unit of Product B requires 4 hours of labor to produce. Due to labor constraints, demand is higher than the company's capacity to make both products. Contribution margin per labor hour Product A Product B Which product should be produced? Product A Complete this question by entering your answers in the tabs below. Required A Required B Required C The products are sold to the public in retail stores. The company has limited floor space and cannot stock as many products. as it would like. Display space is available for only one of the two products. Expected sales of Product A and Product B are 8,000 units and 9,000 units, respectively. Product A Product B Total contribution margin Which product should be sold? < Required A Required C > Required A Required B Required C The maximum number of machine hours available is 40,000. Product A uses 2.50 macl machine hours. The company can sell all the products it produces. Note: Round your answers to 2 decimal places. Total contribution margin per machine hour Which product should be produced? Product A Product B < Required B B Required C >
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