Figure 20-4 Heft Company produces A and B with contribution margins per unit of $40 and $30, respectively.Only 500 labor hours and 300 machine hours are available for production.
Time requirements to produce one unit of A and B are as follows:

- Refer to Figure 20-4.What is the constraint on labor hours for Heft Company?
A) 5A + 1B £ 500
B) 5A + 2B £ 500
C) 1A + 4B £ 300
D) 40A + 30B £ 500

Question

Figure 20-4 Heft Company produces A and B with contribution margins per unit of $40 and $30, respectively.Only 500 labor hours and 300 machine hours are available for production.
Time requirements to produce one unit of A and B are as follows:

- Refer to Figure 20-4.What is the constraint on labor hours for Heft Company?
A) 5A + 1B £ 500 
B) 5A + 2B £ 500 
C) 1A + 4B £ 300 
D) 40A + 30B £ 500

Quizplus · Accepted Answer

The constraint on labor hours for Heft Company is represented by the equation 5A + 2B ≤ 500, indicating that the total labor hours used for products A and B should not exceed 500 hours.

Figure 20-4 Heft Company Produces a and B with Contribution