Wood Carving Corporation manufactures three products. Because of a recent lack of skillled wood carvers, the corporation has had
a shortage of available labor hours. The following per unit data relates to the three products of the corporation:
Letter Openers Elvis Statues Candle Holders
Sales Price $30 $80 $42
Variable Costs $20 $40 $20
Labor Hours Required 1 6 2
Assume that Wood Carving has 1,800 labor hours available next month. Also assume that Wood Carving can only sell 800 units of each product in a given month. What is the maximum amount of contribution margin that Wood Carving can generate next month given this labor hour shortage?
A. $12,000
B. $19,000
C. $19,600 (Correct Answer)
D. $19,800
E. None of the Above
Letter Openers Elvis Statues Candle Holders
Sales Price $30 $80 $42
Variable Costs $20 $40 $20
Labor Hours Required 1 6 2
Assume that Wood Carving has 1,800 labor hours available next month. Also assume that Wood Carving can only sell 800 units of each product in a given month. What is the maximum amount of contribution margin that Wood Carving can generate next month given this labor hour shortage?
A. $12,000
B. $19,000
C. $19,600 (Correct Answer)
D. $19,800
E. None of the Above
1 answer:
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