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April 20, 2014

Homework Help: Accounting

Posted by Gail on Saturday, February 26, 2011 at 10:50pm.

Cambridge Manufacturing Company, Inc. has 200 labor-hours available. There is no limit on machine hours. Cambridge can sell all of Product B that it wants, but it can only sell 30 units and 20 units of Products A and C, respectively.
Product-A Product-B Product-C

Contribution Margin Per Unit $20 $10 $16

Labor Hours Per Unit 4 5 4

Machine Hours Per Unit 10 8 2

Which product (s) and how many should Cambridge produce given the limited supply of labor-hours?

(Points : 4)
30 Units of Product A.
30 Units of Product A; 20 Units of Product C.
30 Units of Product A; 16 Units of Product C.
40 Units of Product B.

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