Hanson Corp.produces three products,and is currently facing a labor shortage - only 3,000 hours are available this month.The selling price,costs,and labor requirements of the three products are as follows:
a.What is the contribution margin per unit for each product?
b.What is the contribution margin per direct labor hour for each product?
c.Assume Hanson has unlimited demand for each product.Which product should Hanson focus on producing?

Question

Hanson Corp.produces three products,and is currently facing a labor shortage - only 3,000 hours are available this month.The selling price,costs,and labor requirements of the three products are as follows:
  a.What is the contribution margin per unit for each product?
b.What is the contribution margin per direct labor hour for each product?
c.Assume Hanson has unlimited demand for each product.Which product should Hanson focus on producing?

Quizplus · Accepted Answer

The Answer of Hanson Corp.produces three products,and is currently facing a labor shortage - only 3,000 hours are available this month.The selling price,costs,and labor requirements of the three products are as follows:
  a.What is the contribution margin per unit for each product?
b.What is the contribution margin per direct labor hour for each product?
c.Assume Hanson has unlimited demand for each product.Which product should Hanson focus on producing?