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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 $15 $27 Machine set-ups
Consider the following production and cost data for two products, L and C:
Product L | Product C | |
Contribution margin per unit | $15 | $27 |
Machine set-ups needed per unit | 3 set-ups | 3 set-ups |
The company can only perform 13,800 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? |
$110,400
$112,500
$124,200
$138,000
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