Suppose that Fender produces only three guitars: Stratocaster, Telecaster, and Jaguar.A limitation of 960 work hours per
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Question:
Suppose that Fender produces only three guitars: Stratocaster, Telecaster, and Jaguar. A limitation of 960 work hours per week prevents Fender from meeting the sales demand for these products. The product information is as follows:
Stratocaster | Telecaster | Jaguar | |||
---|---|---|---|---|---|
unit sale price | $1,200 | $900 | $1,400 | ||
Unit Variable Costs | (630) | (450) | (850) | ||
Unit contribution margin | $570 | $450 | $550 | ||
Labor hours per unit | 15 | 10 | 20 |
Required
Determine the weekly contribution for each product when the total labor hours are assigned to the product with the largest.
1. Unit sale price.
2. Unit contribution margin.
3. Contribution per hour of work.
Related Book For
Operations Management
ISBN: 9781259270154
6th Canadian Edition
Authors: William J Stevenson, Mehran Hojati, James Cao
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