Product A has a unit contribution margin of $45. Product B has a unit contribution margin of

Question:

Product A has a unit of $45. Product B has a unit of $60. Product A requires three testing hours, while Product B requires five testing hours. Determine the most profitable product, assuming the testing is a constraint.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...