Figures for Lakes Company are: $$\begin{array} { l r r }
& \text { Product A } & \text { Product B } \
\text { Selling price per unit } & \$ 44 & \$ 52 \
\text { Variable cost per unit } & \underline { 36 } & \underline { 28 } \
\text { Contribution margin } & \$ \underline { 8 } & \$ \underline { 24 }
\end{array}$$ It requires one labour hour to produce one unit of Product A and four labour hours to produce one unit of Product B.Assume overall demand is greater than the company's capacity to produce.If labour is the constraining factor the company should concentrate production on:

Question

Figures for Lakes Company are: $$\begin{array} { l r r } 
& \text { Product A } & \text { Product B } \
\text { Selling price per unit } & \$ 44 & \$ 52 \
\text { Variable cost per unit } & \underline { 36 } & \underline { 28 } \
\text { Contribution margin } & \$ \underline { 8 } & \$ \underline { 24 }
\end{array}$$ It requires one labour hour to produce one unit of Product A and four labour hours to produce one unit of Product B.Assume overall demand is greater than the company's capacity to produce.If labour is the constraining factor the company should concentrate production on:

Quizplus · Accepted Answer

The Answer is C

Figures for Lakes Company Are It Requires One Labour Hour to Produce One Unit of }