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Buchnell Manufacturing has 35,500 labor hours available for producing M and N. Consider the following information: Product M Product N Required labor time per unit
Buchnell Manufacturing has 35,500 labor hours available for producing M and N. Consider the following information:
Product M | Product N | |
Required labor time per unit (hours) | 2 | 3 |
Maximum demand (units) | 6,300 | 8,300 |
Contribution margin per unit | $ 7.00 | $ 7.50 |
Contribution margin per labor hour | $3.50 | $ 2.50 |
If Buchnell follows proper managerial accounting practices in terms of setting a production schedule, how much contribution margin would the company expect to generate?
$43,100.
$99,350.
$101,350.
$106,350.
None of these.
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