Spring, Inc. manufactures two products. It currently has 1,400 hours of direct labor and 9,100 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product. Unit contribution margin Demand. Labor time Machine time Product A $ . Product B 23.00 2,800 1/4 3 . O units of A and 9,100 units of B 2,800 units of A and 1,000 units of B 2,800 units of A and 600 units of B . 2,800 units of A and 0 units of B units hour hour $ 21.00 1,400 1/2 How much of each product should Spring manufacture per month? Multiple Choice 1/2 units. hour hour

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Spring, Inc. manufactures two products. It currently has 1,400 hours of direct labor and 9,100 hours of machine time
available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for
each product.
Unit contribution
margin
Demand
Labor time
Machine time
Product
A
$
.
Product
B
23.00
2,800
1/4
3
O units of A and 9,100 units of B
•
2,800 units of A and 1,000 units of B
. 2,800 units of A and 600 units of B
2,800 units of A and 0 units of B
units
hour
hour
$
21.00
1,400
1/2
How much of each product should Spring manufacture per month?
Multiple Choice
1/2
units
hour
hour
Transcribed Image Text:Spring, Inc. manufactures two products. It currently has 1,400 hours of direct labor and 9,100 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product. Unit contribution margin Demand Labor time Machine time Product A $ . Product B 23.00 2,800 1/4 3 O units of A and 9,100 units of B • 2,800 units of A and 1,000 units of B . 2,800 units of A and 600 units of B 2,800 units of A and 0 units of B units hour hour $ 21.00 1,400 1/2 How much of each product should Spring manufacture per month? Multiple Choice 1/2 units hour hour
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