Cervine Corporation makes motors for various products. Operating data and unit cost information for its products are presented below.

	Product A			Product B
Annual unit capacity		10,000			20,000
Annual unit demand		10,000			20,000
Selling price	$	100		$	80
Variable manufacturing cost		53			45
Fixed manufacturing cost		10			10
Variable selling & administrative		10			11
Fixed selling & administrative		5			4
Fixed other administrative		2			-
Unit operating profit	$	20		$	10
Machine hours per unit		2.0			1.5

Cervine has 40,000 productive machine hours available. What is the maximum total contribution margin that Cervine can generate in the coming year?

Multiple Choice

• $665,000

• $689,992

• $850,000

• $980,000