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Which of the products should dakon company produce

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Reference no: EM132540444

The Dakon Company manufactures two products: A and B. Information about the products is as follows:

                                                    Product A                     Product B

Revenue per unit                      $150                         $125

Variable costs per unit                    80                         70

Contribution margin per unit            $ 70                       $ 55

Total demand                          15,000 units              12,000 units

Machine hours per unit                   .5 MH                 .25 MH

There are 5,000 machine hours available during the quarter.

Question 1: Which of the products should Dakon Company produce if it can only produce one of the products?

Reference no: EM132540444

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