ll_ _ l _ l _ I ' l _ l ' ' l Zeke Co. manufactures two products that both require labor and machining.There is unlimited demand for these products. Unit sales and cost data and processing requirements follow: Product A Product B Selling Price $75 $200 Variable costs $25 580 Machine hours required 0.4 1.2 Labor hours required 2 6 The company is limited to 160,000 machine hours and 120,000 labor hours. Fixed costs are $1,000,000 What is the most profitable mix of products to produce? Explain your answer Product A Product B Selling Price 75 200 Variable Costs 25 30 Contribution Margin 50 120 Contribution Margin Per Machine Hour 125- 100 Contribution Margin Per Labor Hour 25 20 Product A would be the most profitable since that product has a higher contribution margin for both machine hour and labor hour. So for every hour productA makes $125 in machine hours and $25 in labor hours