Brdova manufactures three types of stained glass windows, cleverly named llows: Sales price Variable costs per unit Fixed costs per unit Required number of labor hours Product A $ 36.00 Product $ 46.00 18.50 21.28 4.00 4.00 1.25 2.00 Cordova currently is limited to 40,000 labor hours per month. equired: a. Assuming an infinite demand for each of Cordova's products, determine roduct. b. Which product would be Cordova's first choice to produce? Complete this question by entering your answers in the tabs below.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...
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E7-15 (Algo) Making Decisions Involving Constrained Resource [LO 7-2, 7-7]
Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products
follows:
Fixed costs per unit
Sales price
Variable costs per unit
Required number of labor hours
Product A
$ 36.00
18.50
Product B
$ 46.00
Product C
$ 77.00
4.00
21.20
4.00
38.50
1.25
2.00
4.00
2.50
Cordova currently is limited to 40,000 labor hours per month.
Required:
1-a. Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each
product.
1-b. Which product would be Cordova's first choice to produce?
Complete this question by entering your answers in the tabs below.
Required 1A Required 1B
Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each
product.
Note: Round your answers to 2 decimal places.
Product A
Product B
Product C
Contribution
Margin
CM per labor hour
CM per labor hour
CM per labor hour
<Required 1A
Required 1B >
Transcribed Image Text:E7-15 (Algo) Making Decisions Involving Constrained Resource [LO 7-2, 7-7] Cordova manufactures three types of stained glass windows, cleverly named Products A, B, and C. Information about these products follows: Fixed costs per unit Sales price Variable costs per unit Required number of labor hours Product A $ 36.00 18.50 Product B $ 46.00 Product C $ 77.00 4.00 21.20 4.00 38.50 1.25 2.00 4.00 2.50 Cordova currently is limited to 40,000 labor hours per month. Required: 1-a. Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each product. 1-b. Which product would be Cordova's first choice to produce? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour for each product. Note: Round your answers to 2 decimal places. Product A Product B Product C Contribution Margin CM per labor hour CM per labor hour CM per labor hour <Required 1A Required 1B >
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