Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A Product B Product C Product A $38.00 20.00 6.00 1.25 Contribution Margin 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 places.) Product B Product C $48.00 $78.00 21.00 40.00 6.00 2.50 CM per DL hour CM per DL hour CM per DL hour 6.00 2.00
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A Product B Product C Product A $38.00 20.00 6.00 1.25 Contribution Margin 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 places.) Product B Product C $48.00 $78.00 21.00 40.00 6.00 2.50 CM per DL hour CM per DL hour CM per DL hour 6.00 2.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
gpu.9
Transcribed Image Text:Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products
follows:
Sales price
Variable costs per unit
Fixed costs per unit
Required number of labor hours
Product A
Product B
Product C
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 places.)
Product A Product B Product C
$38.00
$48.00
$78.00
20.00
21.00
40.00
6.00
6.00
1.25
2.00
Contribution Margin
O Product A
O Product B
O Product C
CM per DL hour
CM per DL hour
CM per DL hour
Which product would be Cordova's first choice to produce?
6.00
2.50
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