Hanson Corp produces three products, and is currently facing a labor shortage – only 3,090 hours are available this month. The selling price, costs, and labor requirements of the three products are as follows:
Product A Product B Product C
Selling price $ 76.00 $ 56.00 $ 66.00
Variable cost per unit $ 48.00 $ 19.00 $ 39.00
Direct labor hours per unit 2.5 3.9 2.9
a.
What is the contribution margin per unit for each product?
Product A
Product B
Product C
b.
What is the contribution margin per direct labor hour for each product? (Round your answers to 2 decimal places.)
Product A
Product B
Product C
c.
Assume Hanson has unlimited demand for each product. Which product should Hanson focus on producing?
Product B
Product C
Product A
Answers: 2
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Hanson Corp produces three products, and is currently facing a labor shortage – only 3,090 hours are...
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