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Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit $27 $22 Machine-hours needed

Consider the following production and cost data for two products, L and C:

Product L Product C
Contribution margin per unit $27 $22
Machine-hours needed per unit 3 hours 2 hours

The company can only perform 14,500 machine hours each period, due to limited skilled labor and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period?

Multiple Choice

  • $145,000

  • $149,750

  • $159,500

  • $174,000

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