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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