Castor Corp. produces three products, and is currently facing a labor shortage - only 6,600 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows: Product A Product B Product C Selling price $110.00 $90.00 $100.00 $ 70.00 $ 77.00 Variable cost per unit Direct labor hours per unit $36.00 1.50 3.00 2.00 Demand 2,200 4,400 1,100 What is the total contribution margin if Castor Corp. prioritizes production according to its limited resources?

Castor Corp. produces three products, and is currently facing a labor shortage - only 6,600 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows: Product A Product B Product C Selling price $110.00 $90.00 $100.00 $ 70.00 $ 77.00 Variable cost per unit Direct labor hours per unit $36.00 1.50 3.00 2.00 Demand 2,200 4,400 1,100 What is the total contribution margin if Castor Corp. prioritizes production according to its limited resources?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 2EA: Crystal Pools estimates overhead will utilize 250,000 machine hours and cost $750,000. It takes 2...

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