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 sell 45
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
2.5
2
Machine-hours per unit
5
4
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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