Knowledge Check $01$

Hamrick Industries makes and sells two products. The demand for both products is unlimited. Product A has a contribution margin of $$7\mathrm{.}70$ per unit. Product B has a contribution margin of $$2\mathrm{.}64$ per unit. The same machines are used to produce both products. Product A requires $0\mathrm{.}33$ machine hours and product $B$ requires $0\mathrm{.}20$ machine hours. Which product should the company make and sell?

Product A because the selling price is $$11\mathrm{.}00$ per unit.

Product A because the contribution margin per unit is $$7\mathrm{.}70.$

Product A because the contribution margin per MH is $$23\mathrm{.}33.$

Product B because the contribution margin per MH is $$13\mathrm{.}20.$

Product B because the contribution margin per unit is $$2\mathrm{.}64.$