Montgomery Company Produces a and B with Contribution Margins Per

question 55

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 machine hours for Montgomery Company?

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

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Definitions:

Alprazolam

A benzodiazepine drug shown to be effective in the treatment of anxiety disorders. Marketed as Xanax.

Benzodiazepine

A class of psychoactive drugs with sedative, hypnotic (sleep-inducing), anxiolytic (anti-anxiety), anticonvulsant, and muscle relaxant properties.

Xanax

A prescription medication, generically known as alprazolam, belonging to the benzodiazepine class, used to treat anxiety and panic disorders.

Antidepressant Drug

Medications used to treat depressive disorders by altering chemicals in the brain to improve mood and emotional state.