Question

Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product C Product Product B $5300 $43.00 19.90 13.00 SRI DO 35.90 5.00 3.00 5.00 250 Sales price Variable costs per unit Foxed costs per unit Required number of labor hours Cordova currently is limited to 45,000 labor hours per month Required: Assuming an Infinite demand for each of Cordova's products, determine contrbution margin per direct labor hour. (Round your answers to 2 decimal place) Contribution Margin Product A CM per DL Hour CM per DL Hour CM per DL Hour Product B Product

Answer 1

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Cordova	Product A	Product B	Product C
Sell Price	43.00	53.00	83.00	A
Variable costs	19.90	13.00	35.90	B
Contribution margin	23.10	40.00	47.10	C=A-B
Labor hours per unit	1.50	2.50	3.00	D
Contribution margin per Direct Labor hour	15.40	16.00	15.70	E=C/D