E7-15 (Algo) Making Decisions Involving Constrained Resource [LO 7-2, 7-7] Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Product A $ 45.00 21.30 Product B $ 55.00 Product C $ 95.00 23.00 37.30 Fixed costs per unit 7.00 Required number of labor hours 1.50 7.00 2.50 7.00 3.00 Cordova currently is limited to 60,000 labor hours per month. Required: 1-a. Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each product. 1-b. Which product would be Cordova's first choice to produce? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each product. Note: Round your answers to 2 decimal places. Product A Product B Product C Contribution Margin CM per labor hour CM per labor hour CM per labor hour
E7-15 (Algo) Making Decisions Involving Constrained Resource [LO 7-2, 7-7] Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Product A $ 45.00 21.30 Product B $ 55.00 Product C $ 95.00 23.00 37.30 Fixed costs per unit 7.00 Required number of labor hours 1.50 7.00 2.50 7.00 3.00 Cordova currently is limited to 60,000 labor hours per month. Required: 1-a. Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each product. 1-b. Which product would be Cordova's first choice to produce? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each product. Note: Round your answers to 2 decimal places. Product A Product B Product C Contribution Margin CM per labor hour CM per labor hour CM per labor hour
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...
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