Underwood, Inc

Multiple Choice

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. How much of each product should Underwood manufacture per month?

A) 1,000 units of A and 2,000 units of B
B) 1,000 units of A and 0 units of B
C) 0 units of A and 2,000 units of B
D) 500 units of A and 1,000 units of B