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:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
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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