Reno CorpProduces Three Products,and Is Currently Facing a Labor Shortage -

question 35

Essay

Reno Corp.produces three products,and is currently facing a labor shortage - only 3,000 hours are available this month.The selling price,costs,and labor requirements of the three products are as follows:
a.What is the contribution margin per unit for each product?
b.What is the contribution margin per direct labor hour for each product?
c.Assume Reno has unlimited demand for each product.Which product should Reno focus on producing?
d.What is the total contribution margin if Reno focuses as determined in part (c)?

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Definitions:

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