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Heft Company Produces a and B with Contribution Margins Per

Question 68

Multiple Choice

Heft Company produces A and B with contribution margins per unit of $40 and $30, respectively. Only 500 labour hours and 300 machine hours are available for production.
Time requirements to produce one unit of A and B are as follows:
 Product A  Praduct B  Labour hours per unit 52 Machine hours per unit 14\begin{array} { l c c c } & \text { Product A } & \text { Praduct B } \\\text { Labour hours per unit }& 5 & 2 \\\text { Machine hours per unit } & 1 & 4\end{array}
-Refer to the figure.What is the objective function to maximize profits for Heft Company?


A) Maximize 1A + 4B
B) Minimize 5A + 2B
C) Maximize 40A + 30B
D) Minimize 40A + 30B

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