Netty is trying to decide what her niche product should be for her business, Handknit by Netty. She is considering two products, socks and sweaters. A pair of socks take on average 5 hours to knit. Sweaters take on average 15 hours to knit. The socks sell for $25 each and have a variable cost of $5. The sweaters sell for $95 and have a variable cost of $35. Netty has 1,000 hours available to knit. Which product should she produce and why?

a. Either one because the two products have the same contribution margin per unit of limited resource.

b. She should knit sweaters because they have a higher contribution margin.

c. She should knit sweaters because she will be able to produce fewer products.

d. She should knit socks because they have a higher contribution margin per unit of limited resource.