Pete's Sports Products makes caps and uniforms. It can sell all of either product it can make. The relevant data for these two products follows:

	Caps	Uniforms
Machine time per unit	0.5 Hour	2 Hours
Selling price per unit	$10	$20
Variable costs per unit	$ 2	$ 4

Total fixed overhead is $240,000. The company has 100,000 machine hours available for production. The company should select which product to maximize operating profits?

	A.	Caps, because its contribution margin per unit is $8
	B.	Uniforms, because its contribution margin per house is $8
	C.	Uniforms, because its contribution margin per unit is $16
	D.	Caps, because its contribution margin per hour is $16