Underwood, Inc. manufactures two products. It currently has 2,000 hours of direct labor and 1,000 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product. What is the contribution margin per machine hour for Product B?
A) $6.00
B) $12.00
C) $15.00
D) $24.00

Question

Underwood, Inc. manufactures two products. It currently has 2,000 hours of direct labor and 1,000 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product.  What is the contribution margin per machine hour for Product B?
A) $6.00 
B) $12.00 
C) $15.00 
D) $24.00

Quizplus · Accepted Answer

The Answer of Underwood, Inc. manufactures two products. It currently has 2,000 hours of direct labor and 1,000 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product.  What is the contribution margin per machine hour for Product B?
A) $6.00 
B) $12.00 
C) $15.00 
D) $24.00