Figure 20-4 Heft Company Produces a and B with Contribution

Multiple Choice

Figure 20-4 Heft 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:

- Refer to Figure 20-4.What is the constraint on labor hours for Heft Company?

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