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Magnitude Company Produces a and B with Contribution Margins Per

Question 20

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:
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:   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 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

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