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:

A) Product B because it has the lowest variable cost

B) Product A because it has the highest contribution margin

C) Product B because it has the highest contribution margin per labor hour

D) 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