Wood carving corporation manufactures three products. because of a recent lack of skillled wood carvers, the corporation has had a shortage of available labor hours. the following per unit data relates to the three products of the corporation:

letter openers elvis statues candle holders
sales price $30 $80 $42
variable costs $20 $40 $20
labor hours required 1 6 2
assume that wood carving has 1,800 labor hours available next month. also assume that wood carving can only sell 800 units of each product in a given month. what is the maximum amount of contribution margin that wood carving can generate next month given this labor hour shortage?

a. $12,000

b. $19,000

c. $19,600 (correct answer)

d. $19,800

e. none of the above

Ultravision inc. anticipates sales of $280,000 from january through april. materials will represent 50 percent of sales, and because of level production, material purchases will be equal for each month during the four months of january, february, march, and april. materials are paid for one month after the month purchased. materials purchased in december of last year were $24,000 (half of $48,000 in sales). labor costs for each of the four months are slightly different due to a provision in the labor contract in which bonuses are paid in february and april. the labor figures are: january $14,000 february 17,000 march 14,000 april 19,000 fixed overhead is $10,000 per month. prepare a schedule of cash payments for january through april. (assume the $280,000 of sales occur equally over the four months of january through april, i.e. monthly sales = $280,000 / 4.)