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A company can sell any mix of Product A and Product B at full capacity....

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Accounting

A company can sell any mix of Product A and Product B at full capacity. The company has? 100,000 hours of capacity. The demand for each product exceeds the capacity. It takes one hour to make one unit of Product A and two hours to make one unit of Product B. The following information is? available:

Product A Product B

Units produced from capacity available ?100,000 ?50,000

Contribution margin per unit ?$20 ?$30

If capacity is the limiting? factor, which product should be? produced?

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