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

Question

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

Quizplus · Accepted Answer

The Answer of 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

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