X Incorporation produces three products, Product A. Produc requires 8 Labor hours per unit to be completed, Product B re to be completed and Product C requires 5 labor hours pe company's labor hours are limited to 60,000 hours. The inf products are given below:
X Incorporation produces three products, Product A. Produc requires 8 Labor hours per unit to be completed, Product B re to be completed and Product C requires 5 labor hours pe company's labor hours are limited to 60,000 hours. The inf products are given below:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:X Incorporation produces three products, Product A. Product B and Product C. Product A
requires 8 Labor hours per unit to be completed, Product B requires 10 labor hours per unit
to be completed and Product C requires 5 labor hours per unit to be completed. The
company's labor hours are limited to 60,000 hours. The information related to the three
products are given below:
Particulars
Selling Price per unit
Variable cost per unit
Product A
$1,400
$800
Product B
$1,800
$1,200
Product C
$1,500
$1,000
Calculate the contribution margin per unit of constrained for Product B.
a. $60 per hours
b. $75 per hour
c. $600 per hour
d. $100 per hour
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