E7-15 (Algo) Making Decisions involving Constrained Resource [LO 7-2, 7-7) Cordova manufactures three types of...
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E7-15 (Algo) Making Decisions involving Constrained Resource [LO 7-2, 7-7) Cordova manufactures three types of stained glass window, cleverly named Products A, B and C. Information about these products follows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product $39.00 20.75 7.00 1.25 Products $49.00 21.00 7.00 2.00 Product c $79.00 40.75 7.00 2.50 Cordova currently is limited to 45,000 labor hours per month Required: Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour (Round your answers to 2 decimal places.) Contribution Margin Product A Product B CM per DL hour CM per DL hour CM per DL hour Product C Which product would be Cordova's first choice to produce? O Product B O Product A O Product C
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