Magnitude Company Produces a and B with Contribution Margins Per

question 71

Multiple Choice

Magnitude 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:
Product A Product B
Labor hours per unit 5 2
Machine hours per unit 1 4
What is the constraint on machine hours for Magnitude Company?

• A) 1A + 4B ≤ 300
• B) 5A + 2B ≤ 500
• C) 1A + 4B ≤ 500
• D) 40A + 30B ≤ 500

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Definitions:

Liver Damage

Harm to the liver that impairs its function, possibly caused by substances like alcohol or by diseases.

Poisoned Water

Denotes water that has been contaminated with harmful substances, making it unsafe for consumption or use.

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A long-lasting health condition that requires ongoing medical attention and/or limits activities of daily living.

Acute Illnesses

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