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Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A $ 50.00 16.40 6.00 2.00 Product B $ 60.00 24.00 6.00 2.50 Product C $ 106.00 24.40 6.00 4.00

Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A $ 50.00 16.40 6.00 2.00 Product B $ 60.00 24.00 6.00 2.50 Product C $ 106.00 24.40 6.00 4.00

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Product A $ 50.00 Product B $ 60.00 Product C $ 106.00 16.40 24.00 6.00 2.50 24.40 6.00 4.00 Sales price Variable costs per unit Fixed costs per unit Required number of labor hours 6.00 2.00 Cordova currently is limited to 60,000 labor hours per month. Required: 1-a. Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each product. 1-b. Which product would be Cordova's first choice to produce? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each product. Note: Round your answers to 2 decimal places. Product A Product B Product C Contribution Margin CM per labor hour CM per labor hour CM per labor hour < Required 1A Required 1B >
Transcribed Image Text:Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Product A $ 50.00 Product B $ 60.00 Product C $ 106.00 16.40 24.00 6.00 2.50 24.40 6.00 4.00 Sales price Variable costs per unit Fixed costs per unit Required number of labor hours 6.00 2.00 Cordova currently is limited to 60,000 labor hours per month. Required: 1-a. Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each product. 1-b. Which product would be Cordova's first choice to produce? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each product. Note: Round your answers to 2 decimal places. Product A Product B Product C Contribution Margin CM per labor hour CM per labor hour CM per labor hour < Required 1A Required 1B >
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