Calculate total contribution of the most profitable product

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Reference no: EM13568673

Scarce Resources Long Beach currently manufactures 3 products with information as follows:

A, B, C

Selling Price: 56, 25, 140

Direct Mtaerial Cost: 12, 3, 60

Direct Labor Cost: 20, 15, 30

Variable Overhead: 12, 2, 6

The cost per direct labor hour is $10. Company has available only 24,000 direct labor hours. They do not have enough labor to satisfy all the demand. The Mximum demand for each product is:

A: 10,000
B: 20,000
C: 6,000

Calculate total contribution of the most profitable product mix. How many of each product should the company produce?
What are the nonfinancial factors in this decision?

Reference no: EM13568673

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