Magnitude Company Produces a and B with Contribution Margins Per

Multiple Choice

Magnitude 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: $\begin{array}{lcc} & \text { Product A } & \text { Product B } \\\text { Labor hours per unit } & 5 & 2 \\\text { Machine hours per unit } & 1 & 4\end{array}$ What is the constraint on machine hours for Magnitude Company?

A) 1A + 4B ? 300
B) 5A + 2B ? 500
C) 1A + 4B ? 500
D) 40A + 30B ? 500