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A company produces two products, E and F, in batches of 100 units. The production and cost data are: Product E: Contribution Margin = $450,

A company produces two products, E and F, in batches of 100 units. The production and cost data are:

Product E: Contribution Margin = $450, Machine Set-Ups per Batch = $25

Product F: Contribution Margin = $340, Machine Set-Ups per Batch = $20

The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product. What is the differential profit from producing product E instead of product F for the year?

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