Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A. C .Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below. Small Medium Large Unit selling

A. C .Tech Manufacturing Appliances manufactures three sizes of kitchen appliances: small, medium, and large. Product information is provided below.
Small Medium Large
Unit selling price $430 $550 $1,230
Unit costs:
Variable manufacturing (200) (320) (700)
Fixed manufacturing (50) (140) (240)
Fixed selling and administrative (90) (25) (130)
Unit profit $90 $65 $160
Demand in units 170 130 170
Machine-hours per unit 70 40 170
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?
A.
182,000
B.
52,000
C.
0
D.
31,720

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions