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Wood Carving Corporation manufactures three products. Because of a recent lack of skilled wood ...

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Wood Carving Corporation manufactures three products. Because of a recent lack of skilled wood ...

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 Openers	Elvis Statues	Candle Holders
Selling price	$ 30	$ 80	$ 42
Variable cost	$ 20	$ 40	$ 20
Labor hours required	1	6	2

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

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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