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Bricktan Incorporated makes three products, Basic, Classic, and Deluxe. The maximum Bricktan can sell is 718,000 units of Basic, 444,000 units of Classic, and 121,500

Bricktan Incorporated makes three products, Basic, Classic, and Deluxe. The maximum Bricktan can sell is 718,000 units of Basic, 444,000 units of Classic, and 121,500 units of Deluxe. Bricktan has limited production capacity of 936,000 machine hours. Machine hours per unit are as follows: Basic, 1 hours; Classic, 1.25 hours; and Deluxe 2.5 hours. Contribution margin per unit is $15 for Basic, $25 for Classic, and $55 for Deluxe. What is the total contribution margin if Bricktan chooses the most profitable sales mix?

Multiple Choice

  • $10,247,500.

  • $8,525,000.

  • $18,941,250.

  • $13,469,000.

  • $16,134,500.

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