Dunford Company produces three products with the following costs and selling prices: Product Y Selling price per unit. $40 $30 $35 Variable costs per unit.. 24 16 20 Contribution margin per unit. $16 $14 $15 Direct labor hours per unit.. 2 3 Machine hours per unit. 5 7 4 If Dunford has a limit of 30,000 machine hours but no limit on units sold or direct labor hours, then the three products should be produced in which order? 4)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Dunford Company produces three products with the following costs and selling prices:
Product
Selling price per unit.
$40
$30
$35
Variable costs per unit.
24
16
20
Contribution margin per unit.
$16
$14
$15
Direct labor hours per unit.
4
2
3
Machine hours per unit.
5
7
4
If Dunford has a limit of 30,000 machine hours but no limit on units sold or direct labor hours,
then the three products should be produced in which order?
Transcribed Image Text:Dunford Company produces three products with the following costs and selling prices: Product Selling price per unit. $40 $30 $35 Variable costs per unit. 24 16 20 Contribution margin per unit. $16 $14 $15 Direct labor hours per unit. 4 2 3 Machine hours per unit. 5 7 4 If Dunford has a limit of 30,000 machine hours but no limit on units sold or direct labor hours, then the three products should be produced in which order?
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