Morris Inc manufactures two products: Widgets and Gizmos. Widgets have a contribution margin per unit of $30 and require 2 hours of direct labor while Gizmos have a contribution margin per unit of $39 and require 3 hours of direct labor.

A. In the short-run, how should the company choose which product to produce or sell first if direct labor hours are a constraint?

B. Assuming there is sufficient demand for each of these products, which of the above products should the company maximize production of first?

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