Heft Company Produces a and B with Contribution Margins Per

question 60

Multiple Choice

Heft Company produces A and B with contribution margins per unit of $40 and $30,respectively.Only 500 labour hours and 300 machine hours are available for production. Time requirements to produce one unit of A and B are as follows:
$\begin{array}{lcc}&\text {Product A }&\text {Product E}\\ \text { Labour hours per unit } &5&2\\ \text { Machine hours per unit } &1&4\\\end{array}$
What is the constraint on machine hours for Heft Company?

• A)1A + 4B \(\le\) 300
• B)1A + 4B \(\le\) 500
• C)5A + 2B \(\le\) 500
• D)40A + 30B \(\le\) 500

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