Clairnex Company produces two products with selling price and variable cost per unit as follows: Product A Product B Selling price per unit $ 125 $ 169 Variable cost per unit 75 120 Due to labor constraints, demand for the products is greater than supply. Product A requires 2 hours of labor to produce and Product B requires 3 hours of labor to produce. Based on this information Clairnex should hire additional labor if the labor rate for product A is Multiple Choice $46 per hour. $71 per hour. $21 per hour. None of the answers is correct.
Clairnex Company produces two products with selling price and variable cost per unit as follows: Product A Product B Selling price per unit $ 125 $ 169 Variable cost per unit 75 120 Due to labor constraints, demand for the products is greater than supply. Product A requires 2 hours of labor to produce and Product B requires 3 hours of labor to produce. Based on this information Clairnex should hire additional labor if the labor rate for product A is Multiple Choice $46 per hour. $71 per hour. $21 per hour. None of the answers is correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Clairnex Company produces two products with selling price and variable cost per unit as follows:
| Product A | Product B | ||||||
| Selling price per unit | $ | 125 | $ | 169 | |||
| Variable cost per unit | 75 | 120 | |||||
Due to labor constraints, demand for the products is greater than supply. Product A requires 2 hours of labor to produce and Product B requires 3 hours of labor to produce. Based on this information Clairnex should hire additional labor if the labor rate for product A is
Multiple Choice
-
$46 per hour.
-
$71 per hour.
-
$21 per hour.
-
None of the answers is correct.
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