Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C....
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Accounting
Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows:
| Product A | Product B | Product C | ||||
| Sales price | $ | 35 | $ | 45 | $ | 75 |
| Variable costs per unit | 17 | 21 | 32 | |||
| Fixed costs per unit | 5 | 5 | 5 | |||
| Required number of labor hours | 1.25 | 2.00 | 2.50 | |||
Cordova currently is limited to 40,000 labor hours per month. Required: Assuming an infinite demand for each of Cordovas products, determine contribution margin per direct labor hour. (Round your answers to 2 decimal place.) Which product would be Cordova's first choice to produce?
| Product C | |
| Product A | |
| Product B |
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