Business, 24.12.2019 21:31 erikabermudez55

Wood carving corporation manufactures three products. because of a recent lack of skillled 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
sales price $30 $80 $42
variable costs $20 $40 $20
labor hours required 1 6 2
assume that wood carving 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?

a. $12,000

b. $19,000

c. $19,600 (correct answer)

d. $19,800

e. none of the above

Answers: 2

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