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 openers elvis statues candle holders selling price $ 30 $ 80 $ 42 variable cost $ 20 $ 40 $ 20 labor hours required 1 6 2 assume that wood carving only 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? multiple choice $12,000 $19,000 $19,600 $19,800

$19,600

Prod 1    Prod 2Prod 3Income Statement

$ 30      $ 80$ 42,0Selling Price

-$ 20    -$ 40-$ 20,0Variable Cost

$ 10      $ 40         $ 22,0Contributing Margin    

     1              6               2Labour Hours  

    10      7        11Contr. Margin/Hours  

200     -    800    Quantity

200              -    1600Labour Hours Shortage

$ 2,000      -    $ 17,600  

Explanation:

To maximize the production over the shortage of hours it's necessary  

to calculate how much it's the Contribution Marging per hour.

Contr. Margin/Hours  Prod1 -> $10,  Prod2 -> $7,  Prod3 -> $11

Once you have the number you produce as much as you can of the product with the higher Contribution Margin per hour.

As it's detailed: 800 Units of Prod3 and 200 Units of Prod1, it totalized 1.800 hours and $19,600 of Contribution Margin.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

c

explanation: