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A company manufactures two products: ABC and XYZ. The costs and revenues are as follows: ABC XYZ Sales Price $70 $42 Variable cost per unit
A company manufactures two products: ABC and XYZ. The costs and revenues are as follows: ABC XYZ Sales Price $70 $42 Variable cost per unit 40 22 Total demand for ABC is 9,690 units and for XYZ is 6,900 units. Machine time is a scarce resource. During the year, 59,000 machine hours are available. ABC requires 5 machine hours per unit, while XYZ requires 2.5 machine hours per unit. What is the maximum contribution margin the company can achieve during a year? Multiple Choice $428,700 $388,500 $826,000
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