Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these productsfollows:Product AProduct BProduct CSales priceVariable costs per unitFixed costs per unitRequired number of labor hours$39.00$49.00$79.0020.7521.0040.757.007.007.001.252.002.50Cordova currently is limited to 45,000 labor hours per monthRequired:Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour. (Round youranswers to 2 decimal places.)Contribution MarginProduct ACM per DL hourProduct BCM per DL hourProduct CCM per DL hour

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Asked Dec 2, 2019
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Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products
follows:
Product A
Product B
Product C
Sales price
Variable costs per unit
Fixed costs per unit
Required number of labor hours
$39.00
$49.00
$79.00
20.75
21.00
40.75
7.00
7.00
7.00
1.25
2.00
2.50
Cordova currently is limited to 45,000 labor hours per month
Required:
Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour. (Round your
answers to 2 decimal places.)
Contribution Margin
Product A
CM per DL hour
Product B
CM per DL hour
Product C
CM per DL hour
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Cordova manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: Product A Product B Product C Sales price Variable costs per unit Fixed costs per unit Required number of labor hours $39.00 $49.00 $79.00 20.75 21.00 40.75 7.00 7.00 7.00 1.25 2.00 2.50 Cordova currently is limited to 45,000 labor hours per month Required: Assuming an infinite demand for each of Cordova's products, determine contribution margin per direct labor hour. (Round your answers to 2 decimal places.) Contribution Margin Product A CM per DL hour Product B CM per DL hour Product C CM per DL hour

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Expert Answer

Step 1

Calculate the contribution margin per direct labor hour for product A.

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Contribution marg in Sales price - Variable cost Required number of lab or hours per direct labor hour $39 $20.75 1.25 =$14.6

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Step 2

Calculate the contribution margin per direct labor hour for product B.

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Contribution marg in Sales price - Variable cost Required number of lab or hours per direct labor hour $49 $21 1.25 -$22.4

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Step 3

Calculate the contribution margin per direct l...

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Contribution marg in Sales price - Variable cost Required number of lab or hours per direct labor hour $79 $40.75 1.25 $30.6

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