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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
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