Hanson Corp produces three products, and is currently facing a labor shortage - only 3,090 hours are available this month. The selling price, costs, and labor requirements of the three products are as follows:

a. What is the contribution margin per unit for each product?
Product A
Product B
Product C
b. What is the contribution margin per direct labor hour for each product? (Round your answers to 2 decimal places.)
Product A
Product B
Product C
c. Assume Hanson has unlimited demand for each product. Which product should Hanson focus on producing?
Product B
Product C
Product A

Transcribed Image Text:

Selling price Variable cost per unit Direct labor hours per unit Product A Product B Product C S76.00 S56.00 66.00 S48.00 S19.00 39.00 3.9 2.5 2.9