Cam Corporation makes two products, Product A and Product B. Operating information from the previous year is as follows:

The firm is limited to the use of 8,000 labor hours. The firm should produce:

		Product B because it has the lowest variable cost
		Product A because it has the highest contribution margin
		Product B because it has the highest contribution margin per labor hour
		Product A because it has the highest contribution margin per labor hour

Sales price per unit Variable cost per unit Total labor hours used per unit Product A $ 17.00 $ 14.00 4 hours Product B $10.00 $ 8.00 2 hours