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Product a consists of a contribution margin per unit of 500

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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 $1,000 and requires 5 hours of machine time. How much of each product should be produced given there are 100 hours of available machine time?

a) 50 units of A and 25 units of B.

b) 25 units of B.

c) 50 units of A.

d) None of the above is correct.

Reference no: EM13478013

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