Question: Underwood, Inc. manufactures two products. It currently has 3,050 hours of direct labor and 1,225 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 |
19.00 |
|
16.00 |
|
| Demand |
900 |
units |
1,150 |
units |
| Labor time |
¾ |
hour |
½ |
hour |
| Machine time |
1 |
hour |
½ |
hour |
How much of each product should Underwood manufacture per month?
a. 900 units of A and 1,150 units of B
b. 900 units of A and 0 units of B
c. 0 units of A and 1,150 units of B
d. 612.5 units of A and 900 units of B