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Orange Co. manufactures 3 products. Budgeted data for the upcoming year is as follows: A4 B5 C6 CM/Unit $166 $92 $127 Direct labour hours per
Orange Co. manufactures 3 products. Budgeted data for the upcoming year is as follows:
| A4 | B5 | C6 |
CM/Unit | $166 | $92 | $127 |
Direct labour hours per unit | 5.71 | 3.63 | 3.37 |
| |||
Maximum expected demand | 129 | 265 | 318 |
Orange Co. is limited to 1200 hours of direct labour in a given year. How many units of product A4 should be produced to maximize contribution margin?
Select one:
a. 22
b. 129
c. 38
d. 128
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