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24. Spring, Inc. manufactures two products. It currently has 1,495 hours of direct labor and 3,575 hours of machine time available per month. The table
24.
Spring, Inc. manufactures two products. It currently has 1,495 hours of direct labor and 3,575 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product.
Product A | Product B | |||||
Unit contribution margin | $ | 26.00 | $ | 21.00 | ||
Demand | 2,600 | units | 1,300 | units | ||
Labor time | 1/5 | hour | 3/4 | hour | ||
Machine time | 1 | hour | 3/4 | hour | ||
How much of each product should Spring manufacture per month?
Multiple Choice
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0 units of A and 3,600 units of B
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2,600 units of A and 0 units of B
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2,600 units of A and 640 units of B
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2,600 units of A and 1,000 units of B
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