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Spring, Incorporated manufactures two products. It currently has 1,425 hours of direct labor and 1,750 hours of machine time available per month. The following table

Spring, Incorporated manufactures two products. It currently has 1,425 hours of direct labor and 1,750 hours of machine time available per month. The following table lists the contribution margin, labor and machine time requirements, and demand for each product: Unit contribution margin Labor time Demand Machine time Product A $ 12.00 700 units 3/4 hour Product B $ 8.00 1,400 units 1 hour 1 hour 3/4 hour What is the total contribution margin if Spring prioritizes production according to its limited resources? Multiple Choice $11,200 $19,600 $15,600 $8,400 Avocado Company has received a special order for 2,300 units of its product at a special price. The product normally sells for $500 and has the following manufacturing costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total unit cost Cost per Unit $ 122 86 63 188 $ 459 Assume that Avocado has sufficient capacity to fill the order without harming normal production and sales. What minimum unit price should Avocado charge to make a $9,200 incremental profit? Multiple Choice $271 $500 $459 $275

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