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:
$$\begin{array} { l c c c }
& \text { Product A } & \text { Praduct B } \
\text { Labour hours per unit }& 5 & 2 \
\text { Machine hours per unit } & 1 & 4
\end{array}$$
-Refer to the figure.What is the constraint on machine hours for Heft Company?
A)1A + 4B $\leq $ 300
B)1A + 4B $\leq $500
C)5A + 2B $\leq $ 500
D)40A + 30B $\leq $ 500

Question

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:
$$\begin{array} { l c c c } 
 & \text { Product A } & \text { Praduct B } \
\text { Labour hours per unit }& 5 & 2 \
\text { Machine hours per unit }  & 1 & 4
\end{array}$$
-Refer to the figure.What is the constraint on machine hours for Heft Company?
A)1A + 4B $\leq $ 300
B)1A + 4B $\leq $500
C)5A + 2B $\leq $ 500
D)40A + 30B $\leq $ 500

Quizplus · Accepted Answer

The constraint on machine hours is determined by the number of machine hours required to produce one unit of each product. For Product A, it requires 1 machine hour per unit, and for Product B, it requires 4 machine hours per unit. With a total of 300 machine hours available, the constraint is represented by the equation 1A + 4B ≤ 300.

Heft Company Produces a and B with Contribution Margins Per