The following information applies to the products of Baird Company.

	Product A			Product B
Selling price per unit	$	16		$	15
Variable cost per unit		12			10

Identify the product that should be produced or sold under each of the following constraints. Consider each constraint separately. Required

1. One unit of Product A requires 4 hours of labor to produce, and one unit of Product B requires 10 hours of labor to produce. Due to labor constraints, demand is higher than the companys capacity to make both products.

2. The products are sold to the public in retail stores. The company has limited floor space and cannot stock as many products as it would like. Display space is available for only one of the two products. Expected sales of Product A and Product B are 12,000 units and 10,000 units, respectively.

3. The maximum number of machine hours available is 38,000. Product A uses 2 machine hours, and Product B uses 5 machine hours. The company can sell all the products it produces.

	Product A	Product B
Contribution margin per labor hour
Which product should be produced?

	Product A	Product B
Total contribution margin
Which product should be sold?

	Product A	Product B
Total contribution margin per machine hour
Which product should be produced?