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Consider the following production and cost data for two products, Big and Little: Big Little Demand in units 8,000 10,000 Contribution margin per unit $24
Consider the following production and cost data for two products, Big and Little:
|
|
| Big | Little |
|
| Demand in units | 8,000 | 10,000 |
|
| Contribution margin per unit | $24 | $18 |
|
| Machine-hours needed per unit | 2 MH | 3 MH |
|
| Labor hours needed per unit | 6 DLH | 4 DLH |
The company has 46,000 direct labor hours available each period. What is the maximum amount of contribution margin the company can make each period?
Group of answer choices
$204,000
$74,000
$372,000
$180,000
$192,000
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