Wubben, Inc. manufactures two products. It currently has 2,000hours of direct labor and 1,000 hours of machine time available permonth. The table below lists the contribution margin, labor andmachine time requirements, and demand for each product.
| Product A | Product B |
Unit contribution margin | $15 | $12 |
Demand | 1,000 units | 2,000 units |
Labor time per unit | 0.75 hours | 0.50 hrs |
Machine time per unit | 1 hour | 0.50 hrs |
(T or F ) If Wubben maximized profit, then the firm willmanufacture 1,000 units of Product 1 and 2,000 units of Product Bper month.
