Question
A company produces and sells three products. Product 1 Product 2 Product 3 Selling price per unit $100 $200 $150 Contribution Margin per Unit $20
A company produces and sells three products.
| Product 1 | Product 2 | Product 3 | |
| Selling price per unit | $100 | $200 | $150 |
| Contribution Margin per Unit | $20 | $80 | $60 |
| Direct labor hours per unit | 4 | 5 | 6 |
The company has only 610 direct labor hours per month and the monthly demand for each product is unlimited.
What is the maximum total monthly contribution margin that the company can earn?
(Make sure to calculate the total contribution margin, not the per-unit amount.)
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Automotive Audits Principles And Practices
Authors: D. H. Stamatis
1st Edition
0367696592, 978-0367696597
