XYZ Company produces different desk lamps. Each of the different lamps Alpha Beta, and Delta have different features and therefore take different amounts of time to produce. Product information for the lamps that XYZ Company produces is given below:
Utilization of a Constrained Resource
Product
Alpha Beta Delta
Selling Price $ $ $
Variable Costs:
Direct Materials $ $ $
Direct Labour $ $ $
Variable Manufacturing Overhead $ $ $
Total Variable Cost $ $ $
Contribution Margin $ $ $
Contribution Margin Ratio Rounded
Direct Labour Rate $ $ $
Currently, the labour market in the region that XYZ Company operates in is very tight, and therefore available labour hours is the company's primary constraint.
Given the above information for XYZ Company and assuming there is only time to produce one product, which of the products should be prioritized firstbased on the contribution per direct labourhour
Question options:
Beta
There is no difference between the products.
Delta
Alpha
