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. Because of limited production capacity the Northeast Division of a pharmaceutical company needs to prioritize the production of the two most profitable drugs. The

. Because of limited production capacity the Northeast Division of a pharmaceutical company needs to prioritize the production of the two most profitable drugs. The controller has provided the following information to aid the decision.

Product A Product B Product C

Contribution Margin per package $12.00 $15.00 $7.50

Machine hours per package 2.5 4 1

Required: Which product should be eliminated to maximize profit?

a.Product A

b.Product B

c.Product C

d.It doesn't make any difference since they are contributing equally.

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