Vargo makes camcorders and TVs. Machine capacity is limited to certain amount of hours hours per month. Table 1 is given. Which of the following statement is correct?

Contribution margin per unit of limited resource for Camcorders is $40.

Contribution margin per unit of limited resource for Camcorders is $312.5.

To earn more profit, management should produce more camcorders if demand exists.

To earn more profit, management should produce more TVs if demand exists

TVs Contribution margin per unit Machine hours required per unit Camcorders $200 .2 $500 .625