Costner produces two product lines. Prices/costs per unit follow. "W" "H" Selling price $60 $45 Direct material $16 $12 Direct labor ($20/hour) $15 $10 Variable overhead $12 $8 Demand for "W" is 209 units and "H"is 341 units Costner has only 175 labor hours available Given the constrained resource, what is the maximum contribution margin the company can attain if it uses the optimal sales mix? Round only your final answer to the nearest dollar. Hint: Consider the financial result if the company follows your recommendations on which line to produce first and how many they would be able to produce of the other product.
Costner produces two product lines. Prices/costs per unit follow.
"W" "H"
Selling price $60 $45
Direct material $16 $12
Direct labor ($20/hour) $15 $10
Variable overhead $12 $8
Demand for "W" is 209 units and "H"is 341 units
Costner has only 175 labor hours available
Given the constrained resource, what is the maximum contribution margin the company can attain if it uses the optimal sales mix?
Round only your final answer to the nearest dollar.
Hint: Consider the financial result if the company follows your recommendations on which line to produce first and how many they would be able to produce of the other product.
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