Manufacture a product income

Reference no: EM13160556

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 1,000 machine hours available to manufacture a product, income will be:

A) $2,000 more if Product A is made.

B) $2,000 less if Product B is made.

C) $2,000 less if Product A is made.

D) the same if either product is made.

Reference no: EM13160556

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