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Underwood, Inc. manufactures two products. It currently has 5,400 hours of direct labor and 2,700 hours of machine time available per month. The table below
Underwood, Inc. manufactures two products. It currently has 5,400 hours of direct labor and 2,700 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 | $ | 100.00 | $ | 80.00 | ||
| Demand | 2,700 | units | 5,400 | units | ||
| Labor time | 3/4 | hour | 1/2 | hour | ||
| Machine time | 1 | hour | 1/2 | hour | ||
What is the total contribution margin if Underwood, Inc. prioritizes production according to its limited resources?
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