XYZ Corp produces three products, and is currently facing a labor shortage – only 3,000 hours are available this month. The selling price, costs, labor requirements, and demand of the three products are as follows:
PRODUCT ==================>ABCSelling Price$50.00$30.00$40.00Variable Cost Per Unit$35.00$10.00$30.00Direct Labor Hours Per Unit1.532Units Demanded10002000500
1A BC50303510152010 6.66666712 SPLess VCCM per unitCM per hourPriorityABC 40301053 2AB 1000 units500 units3 Total CM $ 25,000 1500 hours1500 hours3000 hours 1000*1.5…
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