Bland Company makes three different products,Products A,B,and C,for which the company has accumulated the following information:
$\begin{array}{l}
&\text { Product A}&\text { Product B}&\text { Product C}\
\text { Selling price per unit } & \$ 100 & \$ 160 & \$ 200 \
\text { Variable cost per unit } & \$ 60 & \$ 90 & \$ 120\
\text { Number of direct labor hours }\
\text { per unit}&1&2&2.5\
\text { Market demand}&10,000 \text { units }&8,000 \text { units }&4,000 \text { units }
\end{array}$ Required:
Assuming that Bland has 15,000 direct labor hours available,which product(s)should the company make and sell,and what will be its total contribution margin for the year?

Question

Bland Company makes three different products,Products A,B,and C,for which the company has accumulated the following information:
 $\begin{array}{l}
&\text { Product A}&\text { Product B}&\text { Product C}\
\text { Selling price per unit } & \$  100 & \$  160 & \$  200 \
\text { Variable cost per unit } & \$ 60 & \$  90 & \$ 120\
\text { Number of direct labor hours }\
 \text { per unit}&1&2&2.5\
 \text { Market demand}&10,000 \text { units }&8,000 \text { units }&4,000 \text { units }
\end{array}$ Required:
Assuming that Bland has 15,000 direct labor hours available,which product(s)should the company make and sell,and what will be its total contribution margin for the year?

Quizplus · Accepted Answer

The Answer of Bland Company makes three different products,Products A,B,and C,for which the company has accumulated the following information:
 $\begin{array}{l}
&\text { Product A}&\text { Product B}&\text { Product C}\
\text { Selling price per unit } & \$  100 & \$  160 & \$  200 \
\text { Variable cost per unit } & \$ 60 & \$  90 & \$ 120\
\text { Number of direct labor hours }\
 \text { per unit}&1&2&2.5\
 \text { Market demand}&10,000 \text { units }&8,000 \text { units }&4,000 \text { units }
\end{array}$ Required:
Assuming that Bland has 15,000 direct labor hours available,which product(s)should the company make and sell,and what will be its total contribution margin for the year?

Bland Company Makes Three Different Products,Products A,B,and C,for Which the Company