Exercise 4-18 Dvorak Music produces two durable music stands: Stand A Stand B Se
ID: 2380076 • Letter: E
Question
Exercise 4-18 Dvorak Music produces two durable music stands:Stand A Stand B Selling price $110 $100 Less variable costs 50 64 Contribution margin $60 $36
Stand A requires 6 labor hours and stand B requires 3 labor hours. The company has only 350 available labor hours per week. Further, the company can sell all it can produce of either product. Which stand(s) should the company produce?
The company should produce Stand BStand ABoth stands.
What would be the incremental benefit of obtaining 15 additional labor hours?
Incremental benefit $ Dvorak Music produces two durable music stands:
Stand A Stand B Selling price $110 $100 Less variable costs 50 64 Contribution margin $60 $36
Stand A requires 6 labor hours and stand B requires 3 labor hours. The company has only 350 available labor hours per week. Further, the company can sell all it can produce of either product. Dvorak Music produces two durable music stands:
Stand A Stand B Selling price $110 $100 Less variable costs 50 64 Contribution margin $60 $36
Stand A requires 6 labor hours and stand B requires 3 labor hours. The company has only 350 available labor hours per week. Further, the company can sell all it can produce of either product. Which stand(s) should the company produce?
The company should produce Stand BStand ABoth stands.
Which stand(s) should the company produce?
The company should produce Stand BStand ABoth stands. What would be the incremental benefit of obtaining 15 additional labor hours?
Incremental benefit $ What would be the incremental benefit of obtaining 15 additional labor hours?
Incremental benefit $ Exercise 4-18 Dvorak Music produces two durable music stands:
Stand A Stand B Selling price $110 $100 Less variable costs 50 64 Contribution margin $60 $36
Stand A requires 6 labor hours and stand B requires 3 labor hours. The company has only 350 available labor hours per week. Further, the company can sell all it can produce of either product.
Explanation / Answer
Contribution/labour hr 10 12 Should produce Stand B Incremental benefit $ 180
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