Wood Carving Corporation manufactures three products. Because of a recent lack of skilled 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 Elvis Candle Openers Statues Holders Sales Price $30 $80 $42 Variable Costs $20 $40 $20 Labor Hours Required 1 6 2 Assume that Wood Carving only has 1,800 labor hours available next month. Assume also 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? А. $12,000 В. $19,000 C. $19,600 D. $19,800 E. None of the above

Principles of Accounting Volume 2
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Chapter3: Cost-volume-profit Analysis
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6.
Wood Carving Corporation manufactures three products. Because of a recent lack of skilled 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
Elvis
Candle
Openers
Statues
Holders
Sales Price
$30
$80
$42
Variable Costs
$20
$40
$20
Labor Hours Required
1
Assume that Wood Carving only has 1,800 labor hours available next month. Assume also 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?
А.
$12,000
В.
$19,000
С.
$19,600
D.
$19,800
E. None of the above
Transcribed Image Text:6. Wood Carving Corporation manufactures three products. Because of a recent lack of skilled 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 Elvis Candle Openers Statues Holders Sales Price $30 $80 $42 Variable Costs $20 $40 $20 Labor Hours Required 1 Assume that Wood Carving only has 1,800 labor hours available next month. Assume also 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? А. $12,000 В. $19,000 С. $19,600 D. $19,800 E. None of the above
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