Question
Southern Production Company has 100 labor-hours available. There is no limit on machine-hours. Southern can sell all of B it wants, but it can only
Southern Production Company has 100 labor-hours available. There is no limit on machine-hours. Southern can sell all of B it wants, but it can only sell 45 units and 20 units of A and C, respectively
| Product A | Product B | Product C |
Contribution margin per unit | $15 | $10 | $12 |
Labor-hours per unit | 2.5 | 2.5 | 2 |
Machine-hours per unit | 5 | 3.5 | 1 |
1 a) What is the contribution margin per labor-hour for Product A?
b) What is the contribution margin per labor-hour for Product B?
c) What is the contribution margin per labor-hour for Product C?
d) How many units of Product A should the company make?
e) How many units of Product B should the company make? f) How many units of Product C should the company make?
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