Underwood, Inc. manufactures two products. It currently has 2,000 hours of direct labor and 1,000 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product. Product AProduct BUnit contribution margin$15.00 $12.00 Demand 1,000units 2,000unitsLabor time ¾hour ½hourMachine time 1hour ½hourWhat is the contribution margin per machine hour for Product A?
A. $20.00
B. $15.00
C. $12.00
D. $24.00
Answer: B
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