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Product A has a contribution margin per unit of $500 and required 2 hours of machine time. Product B has a contribution margin per unit of $1000 and...

Product A has a contribution margin per unit of $500 and required 2 hours of machine time. Product B has a contribution margin per unit of $1000 and requires 5 hours of machine time. How much of each product should be produced given there are 100 hours of available machine time?


50 units of A and 25 units of B

25 units of B

50 units of A

None of the above

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50 units of A because it will... View the full answer

2 comments
  • -----------> total hours for production = (50 units x 2 hours) + (25 x 5 hours) = 225 > available machine hours. Incorrect.
    • dinamarcanete
    • May 01, 2018 at 12:30am
  • typo error for option 1
    • dinamarcanete
    • May 01, 2018 at 12:31am

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