Figures for Lakes Company Are It Requires One Labour Hour to Produce One Unit of }

question 44

Multiple Choice

Figures for Lakes Company are: $$\begin{array} { l r r } & \text { Product A } & \text { Product B } \\\text { Selling price per unit } & \$ 44 & \$ 52 \\\text { Variable cost per unit } & \underline { 36 } & \underline { 28 } \\\text { Contribution margin } & \$ \underline { 8 } & \$ \underline { 24 }\end{array}$$ It requires one labour hour to produce one unit of Product A and four labour hours to produce one unit of Product B.Assume overall demand is greater than the company's capacity to produce.If labour is the constraining factor the company should concentrate production on:

• A)Product B,since it has the highest contribution margin per unit
• B)Product B,since it has the highest price
• C)Product A,since it has the highest contribution margin per labour hour
• D)Product B,since it has the lowest costs

---

Definitions:

Contextual Factors

Contextual factors are conditions or variables that influence situations or behaviors but are not directly part of the primary action or phenomena being studied.

Involuntary Commitment

A legal process through which individuals with severe mental illness are hospitalized against their will for treatment.

Residential Psychiatric Facilities

Healthcare establishments where individuals with significant mental health conditions live and receive psychiatric care and treatment on a long-term basis.

Mentally Ill Women

Refers to females suffering from mental disorders that affect their emotions, thinking, behavior, and perception, possibly impacting their overall well-being and function in society.