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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 ==================>

A B C

Selling Price $50.00. $30.00. $40.00

Variable Cost Per Unit. $35.00. $10.00. $30.00

Direct Labor Hours Per Unit1.532

Units Demanded10,002,000,500

  1. In what order shouldXYZ Corpprioritize production of the products?List the letter of the product in the order of priority.
  2. How many of each product should be produced (assuming all units will be sold during the period) during the labor shortage to maximize profit?
  3. What is the total contribution margin ifXYZ Corpprioritizes production according to its limited resources?

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