Castor Corporation produces three products, and is currently facing a labor shortage - only 13,800...
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Accounting
Castor Corporation produces three products, and is currently facing a labor shortage - only 13,800 hours are available this month. The selling prices, costs, labor requirements, and demand of the three products are as follows:
Product A
Product B
Product C
Sales price
$ 230.00
$ 210.00
$ 220.00
Variable cost per unit
$ 161.00
$ 84.00
$ 154.00
Direct labor hours per unit
1.50
3.00
2.00
Demand (units)
4,600
9,200
2,300
What is the total contribution margin if Castor prioritizes production according to its limited resources?
Multiple Choice
$728,640
$607,200
$485,760
$1,457,280
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