Question
XYZCorp produces three products, and is currently facing a labor shortage - only 3,000 hours are available this month. The selling price, costs, labor requirements,
XYZCorp produces three products, and is currently facing a labor shortage - only 3,000 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows:
PRODUCT ==================>ABCSelling Price$50.00$30.00$40.00Variable Cost Per Unit$35.00$10.00$30.00Direct Labor Hours Per Unit1.532Units Demanded10002000500
- In what order shouldXYZ Corpprioritize production of the products?List the letter of the product in the order of priority.
- How many of each product should be produced (assuming all units will be sold during the period) during the labor shortage to maximize profit?
- What is the total contribution margin ifXYZ Corpprioritizes production according to its limited resources?
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Data Analysis And Decision Making
Authors: Christian Albright, Wayne Winston, Christopher Zappe
4th Edition
538476125, 978-0538476126
