The Kadita Company produces three products with the following costs and selling prices:

Product A B C

Selling price per unit ...................... P15 P20 P20

Variable cost per unit..................... P8 P10 P12

Direct labor hours per unit............. 1 1.5 2

Machine hours per unit.................. 3.5 2 2.5

9. If Madison has a limit of 10,000 direct labor hours but no limit on machine hours, then the three products should be produced in the order:

10. What would be the total contribution margin if we follow the answer in number 9.

11. If Madison has a limit of 15,000 machine hours but no limit on direct labor hours, then the three products should be produced in the order: 12. What would be the total contribution margin if we follow the answer in number 11.