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ABCD Inc. produces 4 products. Information pertaining to each of these products is shown below:...

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Accounting

ABCD Inc. produces 4 products. Information pertaining to each of these products is shown below:

Product ABCDSelling Price$20$18$12$18Variable Cost$12$ 6$9$8Contribution Margin$8$12$3$10Machine Hours req/unit:2.531.54

ABCD's machine hours are a constrained resource. Assuming that the company could sell as much of each product as it produces which product should it produce and sell to maximize profits?

a)A

b)B

c)C

d) D

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