Machine hours available to manufacture a product

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Reference no: EM131294445

A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution margin of $16 and takes two machine hours to make and Product B has a unit contribution margin of $30 and takes three machine hours to make. If there are 5,000 machine hours available to manufacture a product, income will be

A. $10,000 less if Product A is made.

B. $10,000 less if Product B is made.

C. $10,000 more if Product A is made.

D. the same if either product is made.

Reference no: EM131294445

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