Bland Company Makes Three Different Products,Products A,B,and C,for Which the Company

Essay

Bland Company makes three different products,Products A,B,and C,for which the company has accumulated the following information:
$\begin{array}{l}&\text { Product A}&\text { Product B}&\text { Product C}\\\text { Selling price per unit } & \$ 100 & \$ 160 & \$ 200 \\\text { Variable cost per unit } & \$ 60 & \$ 90 & \$ 120\\\text { Number of direct labor hours }\\ \text { per unit}&1&2&2.5\\ \text { Market demand}&10,000 \text { units }&8,000 \text { units }&4,000 \text { units }\end{array}$ Required:
Assuming that Bland has 15,000 direct labor hours available,which product(s)should the company make and sell,and what will be its total contribution margin for the year?