Question
Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit $30 $24 Machine set-ups
| Consider the following production and cost data for two products, L and C: |
| Product L | Product C | |
| Contribution margin per unit | $30 | $24 |
| Machine set-ups needed per unit | 3 set-ups | 2 set-ups |
| The company can only perform 14,600 machine set-ups 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? |
A. $160,600
B. $165,400
C. $175,200
D. $189,800
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Accounting Information Systems Controls And Processes
Authors: Leslie Turner, Andrea B. Weickgenannt, Mary Kay Copeland
5th Edition
1119989485, 9781119989486
