Pasadena Corp. produces three products, and currently has a shortage of machine hours since one of its two machines is down only 300 hours are available this month. The selling price, costs, and labor requirements of the three products are as follows:

	Product A			Product B			Product C
Selling price	$	7.00		$	4.50		$	2.25
Variable cost per unit	$	6.00		$	3.00		$	2.00
Machine hours per unit		0.50			0.25			0.25

a. What is the contribution margin per unit for each product? (Round your answers to 2 decimal places.)

b. What is the contribution margin per machine hour for each product? (Round your answers to 2 decimal places.)

c. Assume Pasadena has unlimited demand for each product. Which product should Pasadena focus on producing?

• Product A

• Product B

• Product C