Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product A Product B Product C Sales price $ 35 $ 45 $ 75 Variable costs per unit 17 21 32 Fixed costs per unit 5 5 5 Required number of labor hours 1.25 2.00 2.50 Cordova currently is limited to 40,000 labor hours per month. Required: Assuming an infinite demand for each of Cordova’s products, determine contribution margin per direct labor hour. (Round your answers to 2 decimal place.)
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product A Product B Product C Sales price $ 35 $ 45 $ 75 Variable costs per unit 17 21 32 Fixed costs per unit 5 5 5 Required number of labor hours 1.25 2.00 2.50 Cordova currently is limited to 40,000 labor hours per month. Required: Assuming an infinite demand for each of Cordova’s products, determine contribution margin per direct labor hour. (Round your answers to 2 decimal place.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows:
| Product A | Product B | Product C | ||||
| Sales price | $ | 35 | $ | 45 | $ | 75 |
| Variable costs per unit | 17 | 21 | 32 | |||
| Fixed costs per unit | 5 | 5 | 5 | |||
| Required number of labor hours | 1.25 | 2.00 | 2.50 | |||
Cordova currently is limited to 40,000 labor hours per month.
Required:
Assuming an infinite demand for each of Cordova’s products, determine contribution margin per direct labor hour. (Round your answers to 2 decimal place.)
Product A
Product B
Product C
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