X Incorporation produces three products, Product A. Product B and Product C. Product A requires 8 Labor hours per unit to be completed, Product B requires 10 labor hours per unit to be completed and Product C requires 5 labor hours per unit to be completed. The company's labor hours are limited to 60,000 hours. The information related to the three products are given below: Particulars Selling Price per unit Variable cost per unit $75 per hour Calculate the contribution margin per unit of constrained for Product B. $600 per hour $60 per hours Product A $1,400 $800 $100 per hour Product B $1,800 $1,200 Product C $1,500 $1,000
X Incorporation produces three products, Product A. Product B and Product C. Product A requires 8 Labor hours per unit to be completed, Product B requires 10 labor hours per unit to be completed and Product C requires 5 labor hours per unit to be completed. The company's labor hours are limited to 60,000 hours. The information related to the three products are given below: Particulars Selling Price per unit Variable cost per unit $75 per hour Calculate the contribution margin per unit of constrained for Product B. $600 per hour $60 per hours Product A $1,400 $800 $100 per hour Product B $1,800 $1,200 Product C $1,500 $1,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:X Incorporation produces three products, Product A. Product B and Product C. Product A requires 8 Labor hours per unit to be
completed, Product B requires 10 labor hours per unit to be completed and Product C requires 5 labor hours per unit to be
completed. The company's labor hours are limited to 60,000 hours. The information related to the three products are given
below:
Particulars
Selling Price per unit
Variable cost per unit
$75 per hour
Calculate the contribution margin per unit of constrained for Product B.
$600 per hour
$60 per hours
Product A
$1,400
$800
$100 per hour
Product B
$1,800
$1,200
Product C
$1,500
$1,000
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