A company sells two products with information as follows:

	A	B
Price per unit	$12	$20
Variable cost per unit	$10	$12

Products are made by machine. 4 units of Product A can be made with one machine hour and 2 units of Product B can be made with one machine hour. The company has a maximum of 3,000 machine hours available per month. Assume there are no constraints on sales of either product, and the company could choose any product mix they wish. What is the maximum amount of contribution margin that the company could earn in a month?

A.

$48,000

B.

$18,000

C.

$22,000

D.

$16,000

Nordic Avionics makes aircraft instrumentation. Their basic navigation radio requires $80 in variable costs and requires $2,000 per month in fixed costs. Nordic sells 30 radios per month. If they process the radio further to enhance its functionality, it will require an additional $25 per unit of variable costs, plus an increase in fixed costs of $800 per month. The current price of the radio is $260. The CEO wishes to improve operating income by $1,000 per month by selling the enhanced version of the radio. In order to hit his target, the price to be charged for the enhanced product is:

A.

$440 per unit

B.

$345 per unit

C.

$212 per unit

D.

$367 per unit