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Assume a company makes only three products, A, B, and C: Product A Product B Product C Estimated customer demand in units 700 600 800
Assume a company makes only three products, A, B, and C:
Product A | Product B | Product C | |
---|---|---|---|
Estimated customer demand in units | 700 | 600 | 800 |
Selling price per unit | $ 80 | $ 65 | $ 45 |
Variable cost per unit | $ 35 | $ 26 | $ 20 |
Machine-hours per unit | 2.5 | 3.0 | 1.25 |
The company has only 3,100 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource?
Multiple Choice
$61,050
$63,050
$56,050
$59,050
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