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 | $ | 49 | ||||||||
| Variable cost per unit | $ | 35 | $ | 26 | $ | 20 | ||||||||
| Machine-hours per unit | 2.5 | 3.0 | 1.25 | |||||||||||
The company has only 2,800 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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Fundamental Accounting Principles Volume 2
Authors: Kermit Larson, Heidi Dieckmann
15th Canadian Edition
1259087360, 9781259087363
