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Underwood, Inc. manufactures two products. It currently has 2,700 hours of direct labor and 1,000 hours of machine time available per month. The table below
Underwood, Inc. manufactures two products. It currently has 2,700 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 | Product B | |||||
| Unit contribution margin | $ | 29.00 | $ | 27.00 | ||
| Demand | 2,400 | units | 1,200 | units | ||
| Labor time | 1/3 | hour | 1/5 | hour | ||
| Machine time | 1 | hour | 1/5 | hour | ||
What is the contribution margin per machine hour for Product B?
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