Maximize contribution per labor hour

Steps:

• Identify the limiting factor: labor hours, as they're limited and only one product can be produced.
• Calculate contribution per labor hour for each product: divide contribution per unit by labor hours per unit.
• Compare these ratios across A, B, C, D to find the highest value.
• Select the product with the maximum contribution per labor hour to maximize total profit.

Why D is correct:

• D has the highest contribution per labor hour, optimizing profit under the labor constraint per throughput accounting principles.

Why the others are wrong:

• A: Lower contribution per labor hour than D, yielding less profit.
• B: Lower contribution per labor hour than D, yielding less profit.
• C: Lower contribution per labor hour than D, yielding less profit.

Final answer: D