Question 39) Guru Co. produces two products. Both products pass through a firing process that is operating at full capacity and is a production bottleneck. Product A requires 2 hours of processing and has a contribution margin per unit of $60. Product B requires 1 hour of processing and has a contribution margin of $40. Which of the following provides the most accurate assessment of the situation assuming unlimited demand for each product?

A)Production of Product B rather than Product A will generate the maximum profitability for Guru

B)Production of Product A rather than Product B will generate the maximum profitability for Guru

c)Raising the selling price of Product B by $20 will cause management to be indifferent between producing Product A or Product B

D)Raising the selling price of Product A by $10 will cause management to be indifferent betuween producing Product A or Product B