Question
16...SandhillIndustries manufactures chairs and tables that are in high demand by local office furniture stores. Following is information for each of these products: Chairs Tables
16...SandhillIndustries manufactures chairs and tables that are in high demand by local office furniture stores. Following is information for each of these products:
Chairs Tables
Selling price per item $71.00 $88.00
Variable cost per item 53.00 9.00
Contribution margin per item $18.00 $19.00
Machine hours per item 1.60 1.60
Sandhillhas968machine hours available each month. The demand for chairs is630units per month and the demand for tables is410units per month. IfSandhillallocates its production capacity between the chairs and tables so that it maximizes the company's contribution margin, what will the total contribution margin be?
a...$11300
b...$10890
c...$11495
d...$19130
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