Bland Company Makes Three Different Products,Products A,B,and C,for Which the Company

question 103

Essay

Bland Company makes three different products,Products A,B,and C,for which the company has accumulated the following information:
$\begin{array}{l}&\text { Product A}&\text { Product B}&\text { Product C}\\\text { Selling price per unit } & \$ 100 & \$ 160 & \$ 200 \\\text { Variable cost per unit } & \$ 60 & \$ 90 & \$ 120\\\text { Number of direct labor hours }\\ \text { per unit}&1&2&2.5\\ \text { Market demand}&10,000 \text { units }&8,000 \text { units }&4,000 \text { units }\end{array}$ Required:
Assuming that Bland has 15,000 direct labor hours available,which product(s)should the company make and sell,and what will be its total contribution margin for the year?

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Definitions:

Blind Conformity

The act of following the rules or standards of a group without questioning or understanding them.

Groupthink

Groupthink is a psychological phenomenon that occurs within a group of people when the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Reorganization Changes

The process of modifying the structure or operations of an organization to improve efficiency, adapt to new markets, or recover from financial distress.

Political Activity

Actions intended to influence government policy or decisions, ranging from voting and lobbying to activism and protest.