Hamrick Industries makes and sells two products. The demand for both products is unlimited. Product...
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Accounting
Hamrick Industries makes and sells two products. The demand for both products is unlimited. Product A has a contribution margin of $7.70 per unit. Product B has a contribution margin of $2.64 per unit. The same machines are used to produce both products. Product A requires 0.33 machine hours and product B requires 0.20 machine hours. Which product should the company make and sell?
A. Product A because the selling price is $11.00 per unit.
B. Product A because the contribution margin per unit is $7.70.
C. Product A because the contribution margin per MH is $23.33.
D. Product B because the contribution margin per MH is $13.20.
E. Product B because the contribution margin per unit is $2.64.
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