Question
A. C .Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Small Medium Large Unit sellingprice$430$550$1,230
A. C .Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.
SmallMediumLarge
Unit sellingprice$430$550$1,230
Unit costs:
Variablemanufacturing(200)(320)(700)
Fixedmanufacturing(50)(140)(240)
Fixed selling andadministrative(90)(25)(130)
Unitprofit$90$65$160
Demand inunits170130170
Machine-hours perunit7040170
The maximum machine-hours available are 6,200 per week.
How much is the maximum amount of total contribution margin possible to the firm in the short run?
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
