The firm has two products, C and D. C requires 1 direct labor hour and D requires 2 direct labor hours. The firm has a demand for 1,000 units of C and a demand for 1,000 units of D. The contribution margin per unit is $50 for C and $80 for D. The firm has 2,000 labor hours available. 

What should the product output mix be that maximizes the profits of the firm given that the firm has 2,000 direct labor hours?

Answer rating: 100% (QA)

To determine the product output mix that maximizes the profits of the firm we need to calculate the ... View the full answer