QUESTION:

Tamara Inc. manufactures and sells three products. Relevant per-unit data for each product is as follows:

	Product A	Product B	Product C
Selling price / unit	$9.00	$12.50	$15.00
Variable costs / unit	$3.00	$11.30	$12.50
Machine hours / unit	2 hrs	1 hr	2 hrs

Using the above information answer the following questions.

What is the contribution margin per hour for Product A?

What is the contribution margin per hour for Product B?

What is the contribution margin per hour for Product C?

If the company had 2,100 machine hours available to produce a product, which product should they produce?

Input either the letter A for Product A, the letter B for Product B or the letter C for Product C.

If the company produced only the product you noted in your answer to the previous question, what would be the total contribution margin for the company?