Question
Assume a company makes only three products, A, B, and C: Product A Product B Product C Selling price per unit $ 80 $ 65
Assume a company makes only three products, A, B, and C:
| Product A | Product B | Product C | ||||||||||||
| Selling price per unit | $ | 80 | $ | 65 | $ | 54 | ||||||||
| Variable cost per unit | $ | 35 | $ | 26 | $ | 20 | ||||||||
| Machine-hours per unit | 2.5 | 3.0 | 1.25 | |||||||||||
The company has only 3,400 machine-hours available and unlimited demand for each of its three products. The highest total contribution margin that the company can earn if it makes optimal use of its constrained resource is closest to:
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Strategic Audits For Continuous Business Improvement
Authors: Parbatee Chang
2nd Edition
1507679483, 978-1507679487
