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XYZ produces and sells A and B. A's contribution margin is $10 per unit and...

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Accounting

XYZ produces and sells A and B. A's contribution margin is $10 per unit and B's contribution margin is $15 per unit. To produce one unit of A or B, 5 machine hours are required. Which product A or B, should be prioritized for production? (LO 5.2)

A produces a higher contribution margin, therefore A should be prioritized

B produces a higher contribution margin, therefore B should be prioritized

A and B produce the same contribution margin (neither is a priority)

None of the above

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