Barclay manufactures three types of stained glass window, cleverly named Product

Question

Barclay manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows:

Product A

Product B

Product C

Sales price

$

35

$

45

$

75

Variable costs per unit

17

21

32

Fixed costs per unit

5

5

5

Required number of labor hours

0.5

0.8

1.25

Barclay currently is limited to 16,000 labor hours per month.

Requirement 1:

Determine contribution margin per direct labor hour.(Round your answers to 2 decimal place. Omit the "$" sign in your response.)

Contribution Margin per Direct Labor Hour:

Product A

$

CM per DL hour

Product B

$

CM per DL hour

Product C

$

CM per DL hour

Requirement 2:

Which company has the highest contribution margin per direct labor hour?

Barclay manufactures three types of stained glass window, cleverly named Products A, B, and C. Information about these products follows:

Explanation / Answer

Contribution Margin per Direct Labor HourProduct A = (35-17)/.5 =36CM per DL hour

Contribution Margin per Direct Labor HourProduct b = (45-21)/.8 =30CM per DL hour

Contribution Margin per Direct Labor HourProduct c = (75-32)/1.25=34.4CM per DL hour

Requirement 2:

Requirement 2:

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