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

Product L

Product C

Contribution Margin per Unit

$$130$

$$120$

Machine Setups Needed per Unit

$10$ setups

$8$ setups

The company can only perform $65,000$ machine setups each period due to limited skilled labour, and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period?

Question $6$Answer

a$.$

$$845,000$

b$.$

$$975,000$

c$.$

$$910,000$

d$.$

$$1,820,000$