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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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