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 constraint on labor hours for Montgomery Company?

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