Montgomery Company Produces a and B with Contribution Margins Per

Multiple Choice

Montgomery 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: $\begin{array}{lcc} & \text { Product A } & \text { Product B } \\\text { Labor hours per unit } & 6 & 3 \\\text { Machine hours per unit } & 2 & 5\end{array}$
What is the constraint on labor hours for Montgomery Company?

A) 6A + 3B ? 500
B) 6A + 2B ? 500
C) 2A + 5B ? 300
D) 40A + 30B ? 500