7T-12

Underwood, Inc. manufactures two products. It currently has 5,700 hours of direct labor and 2,100 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product. Unit contribution margin Demand Labor time Machine time Product A Product B $23.00 $ 21.00 2,400 units 1,200 units 1/2 hour 3/4 hour 2 hour 3/4 hour What is the contribution margin per machine hour for Product B? Multiple Choice O $28.00 o $21.00 o $23.00 O $16.00