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 | $ 51 |
| 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 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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Modern Auditing
Authors: William C. Boynton, Walter G. Kell, Raymond N. Johnson, Dr William Boynton
7th Edition
047118909X, 978-0471189091
