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Underwood, Inc. manufactures two products. It currently has 2,000 hours of direct labor and 1,000 hours of machine time available per month. The table below

Underwood, Inc. manufactures two products. It currently has 2,000 hours of direct labor and 1,000 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product.

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What is the contribution margin per machine hour for Product A?

Unit contribution margin Demand Labor time Machine time Product A $15.00 1,000 units hour 1 hour Product B $12.00 2,000 units hour hour

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