Snerd Products only has machine hours to produce and sell one of the following two products:
Machine Hours Contribution
Required Margin Per Unit
Product X 0.3 $6
Product Y 0.1 $5
The company has machine capacity of 900 hours. Snerd should produce
a. X because it has the highest contribution margin per machine hour
b. X because it uses fewer machine hours per unit
c. Y because it has the highest contribution margin per machine hour
d. Y because more units can be produced per machine hour than with X