A company produces products a b and c the company has

Reference no: EM13575654

A company produces products A, B, and C. The company has excess capacity. Products A, B, and C have a contribution margin of 10, 15, and 20, respectively. Products A, B, and C have a contribution margin per hour of 10, 5, and 6.67 per contribution margin per hour, respectively. Assume that the scarce resource for the firm is time, that is, if an hour more is spent on producing one more product, there would be an hour less spent on producing another product. What should the company produce?

Reference no: EM13575654

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