Wildflower Inc. sells three products-J, K and L. Here are data regarding the three products: Annual customer demand, in units Selling price, per unit Variable costs, per unit Direct labor hours to produce one unit Product J 525 units $660 $280 4 hours Product K 450 units $940 $515 5 hours Product L 600 units $370 $160 2 hours Wildflower's current capacity is 3,000 direct labor hours per year. How much should Wildflower be willing to pay per direct labor hour to acquire additional capacity?
Wildflower Inc. sells three products-J, K and L. Here are data regarding the three products: Annual customer demand, in units Selling price, per unit Variable costs, per unit Direct labor hours to produce one unit Product J 525 units $660 $280 4 hours Product K 450 units $940 $515 5 hours Product L 600 units $370 $160 2 hours Wildflower's current capacity is 3,000 direct labor hours per year. How much should Wildflower be willing to pay per direct labor hour to acquire additional capacity?
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 14MC: A company produces two products. E and F in batches of 100 units. The production and cost data are:...
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Question
![Wildflower Inc. sells three products-J, K and L. Here are data regarding
the three products:
Annual customer demand, in units
Selling price, per unit
Variable costs, per unit
Direct labor hours to produce one unit
$85 per hour
O $90 per hour
O $95 per hour
O $105 per hour
Product J
525 units
$660
$280
4 hours
None of the above
Product K
450 units
$940
$515
5 hours
Product L
600 units
Wildflower's current capacity is 3,000 direct labor hours per year. How
much should Wildflower be willing to pay per direct labor hour to acquire
additional capacity?
$370
$160
2 hours](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7ab2fcdd-e673-450e-8879-48d7de8ef6bd%2F38c77477-0d5a-46d8-b00a-29ea927aca51%2Fh8xm9ob_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Wildflower Inc. sells three products-J, K and L. Here are data regarding
the three products:
Annual customer demand, in units
Selling price, per unit
Variable costs, per unit
Direct labor hours to produce one unit
$85 per hour
O $90 per hour
O $95 per hour
O $105 per hour
Product J
525 units
$660
$280
4 hours
None of the above
Product K
450 units
$940
$515
5 hours
Product L
600 units
Wildflower's current capacity is 3,000 direct labor hours per year. How
much should Wildflower be willing to pay per direct labor hour to acquire
additional capacity?
$370
$160
2 hours
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