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Wubben, Inc. manufactures two products. It currently has 2,000 hours of direct labor and 1,000 hours of machine time available per month. The table below
Wubben, Inc. manufactures two products. It currently has 2,000 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 | $15 | $12 |
Demand | 1,000 units | 2,000 units |
Labor time per unit | 0.75 hours | 0.50 hrs |
Machine time per unit | 1 hour | 0.50 hrs |
(T or F ) If Wubben maximized profit, then the firm will manufacture 1,000 units of Product 1 and 2,000 units of Product B per month.
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