Figure 20-4 Montgomery Company Produces a and B with Contribution Margins Per

question 49

Multiple Choice

Figure 20-4
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:

-Refer to Figure 20-4. 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:

Parietal

Referring to the parietal bone of the skull or the parietal lobe of the brain, involved in processing sensory information.

Mastoid

A prominent bony structure located behind the human ear, part of the temporal bone, containing air spaces that communicate with the middle ear.

Sternum

The long flat bone in the upper middle of the front of the chest to which the ribs are attached.

Costae

The plural form of costa, referring to ribs, which are long curved bones forming the rib cage.