Product S has a contribution margin of $150 per unit and requires three hours of machine time Product T requires four hours of machine time and provides $200 of contribution margin per unit Required If the capacity of machine time is limited to 600 hours and only one product can be produced, what i...

Product S Product T Contribution margin per unit 150 200 Machine hours required per un ...

Product S has a contribution margin of $150 per unit and requires three hours of machine time.

Question:

Product S has a of $150 per unit and requires three hours of machine time. Product T requires four hours of machine time and provides $200 of per unit.
Required:
If the capacity of machine time is limited to 600 hours and only one product can be produced, what is the maximum amount of contribution that could be generated?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...