Contribution margin per unit


Problem:

Product A has a contribution margin per unit of $500 and required 2 hours of machine time. Product B has a contribution margin per unit of $1,000 and requires 5 hours of machine time.

Required:

Question: How much of each product should be produced given there are 100 hours of available machine time? Note: Please provide full description.

  • 50 units of A and 25 units of B.
  • 25 units of B.
  • 50 units of A.
  • None of the above is correct.

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Finance Basics: Contribution margin per unit
Reference No:- TGS0893004

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