Spring, Incorporated manufactures two products. It currently has 875 hours of direct labor and 1,100...
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Accounting
Spring, Incorporated manufactures two products. It currently has 875 hours of direct labor and 1,100 hours of machine time available per month. The following table lists the contribution margin, labor and machine time requirements, and demand for each product:
Product A
Product B
Unit contribution margin
$ 11.00
$ 8.00
Demand
1,100
units
2,200
units
Labor time
1/4
hour
1/2
hour
Machine time
0
hour
1/4
hour
What is the total contribution margin if Spring prioritizes production according to its limited resources?
Multiple Choice
$29,700
$12,100
$17,600
$21,700
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