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A company can sell any mix of Product A and Product B at full capacity. The company has 100,000 hours of capacity. The demand for
A company can sell any mix of Product A and Product B at full capacity. The company has 100,000 hours of capacity. The demand for each product exceeds the capacity. It takes one hour to make one unit of Product A and two hours to make one unit of Product B. The following information is available: Product A Product B Units produced from capacity available 100,000 50,000 Contribution margin per unit $20 $30 If capacity is the limiting factor, which product should be produced? 30,000 units of Product A and 20,000 units of Product B 100,000 units of Product A and 0 units of Product B 0 units of Product A and 50,000 units of Product B 20,000 units of Product A and 30,000 units of Product B O none of the above. Jim
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