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zer0latency zer0latency
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A year ago

Wood Carving Corporation manufactures three products. Because of a recent lack of skilled 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 OpenersElvis StatuesCandle Holders
Selling price$ 30$ 80$ 42
Variable cost$ 20$ 40$ 20
Labor hours required162

Assume that Wood Carving only 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?



▸ $12,000

▸ $19,000

▸ $19,600

▸ $19,800
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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deathnature9deathnature9
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