Figure 20-4 Montgomery Company Produces a and B with Contribution Margins Per

Multiple Choice

Figure 20-4
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:

-Refer to Figure 20-4. What is the objective function to maximize profits for Montgomery Company?

A) Minimize 6A + 3B
B) Maximize 2A + 5B
C) Minimize 40A + 30B
D) Maximize 40A + 30B