Question

Sage Corporation manufactures two products with the following characteristics. Unit Contribution Margin Machine Hours Required for...

Sage Corporation manufactures two products with the following characteristics.

Unit Contribution
Margin

Machine Hours
Required for Production
Product 1 $47.55 0.15 hours
Product 2 $36.30 0.10 hours


If Sage’s machine hours are limited to 2,000 per month, determine which product it should produce.

Product 1 Product 2
Contribution margin per unit of limited resource $Enter a dollar amount $Enter a dollar amount
Sage Corporation should produce Select an option                                                           Product 1Product 2
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