Refer to the information presented in M7-10. Suppose that Anne has developed a rectangular, medium-size ceramic pot. It requires four hours of kiln time; however, two medium-size pots can fit in the kiln at once. The medium-size pots would sell for $60 each and have variable cost of $10 per pot.

If Anne has only 40 hours of firing time available per week, what is the maximum amount of contribution margin she can earn perweek?

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Square Round Sales price Variable cost Firing time $70 $15 2.5 hours $90 $20 3.5 hours