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Clairnex Company produces two products with selling price and variable cost per unit as follows: Product A Product B Selling price per unit $ 50

Clairnex Company produces two products with selling price and variable cost per unit as follows:

Product A Product B
Selling price per unit $ 50 $ 70
Variable cost per unit 30 40

Due to labor constraints, demand for the products is greater than supply. Product A requires 2 hours of labor to produce and Product B requires 5 hours of labor to produce. Based on this information Clairnex should hire additional labor if the labor rate for product A is

a. $19 per hour.

b. $29 per hour.

c. $9 per hour.

d. None of the answers is correct.

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