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Barclay manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows: |
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Product A |
Product B |
Product C |
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Sales price |
$ |
35 |
$ |
45 |
$ |
75 |
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Variable costs per unit |
17 |
21 |
32 |
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Fixed costs per unit |
5 |
5 |
5 |
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Required number of labor hours |
0.5 |
0.8 |
1.25 |
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Barclay currently is limited to 16,000 labor hours per month. |
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Requirement 1: |
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Determine contribution margin per direct labor hour.(Round your answers to 2 decimal place. Omit the “$” sign in your response.) |
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Contribution Margin per Direct Labor Hour: |
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Product A |
$ |
CM per DL hour |
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Product B |
$ |
CM per DL hour |
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Product C |
$ |
CM per DL hour |
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Requirement 2: |
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Which company has the highest contribution margin per direct labor hour? |