Montgomery Company Produces a and B with Contribution Margins Per

question 76

Multiple Choice

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: $\begin{array}{lcc} & \text { Product A } & \text { Product B } \\\text { Labor hours per unit } & 6 & 3 \\\text { Machine hours per unit } & 2 & 5\end{array}$
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

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Definitions:

Stomach Acids

The digestive fluids secreted by the stomach’s lining, consisting mainly of hydrochloric acid, pepsin, and intrinsic factor, crucial for breaking down food and killing pathogens.

Esophagus

The muscular tube that connects the throat (pharynx) with the stomach; it's responsible for transporting food and liquids.

Digestive System

is a series of organs that convert food into essential nutrients that are absorbed into the body and eliminate unused waste material.

Rectum

The final section of the large intestine, terminating at the anus, where stool is stored before being expelled from the body.