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Underwood, Inc. manufactures two products. It currently has 2,500 hours of direct labor and 1,000 hours of machine time available per month. The table
Underwood, Inc. manufactures two products. It currently has 2,500 hours of direct labor and 1,000 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product. Product A Unit contribution margin $32.00 Product B $30.00 Demand Labor time 1,800 units 900 units 1/5 hour 3/4 hour Machine time 1 hour 3/4 hour What is the contribution margin per machine hour for Product B? Multiple Choice $30.00 $23.00 $40.00 $32.00
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