Question
Custom Furniture manufactures a small table and a large table. The small table sells for$900, has variable costs of$560 pertable, and takes ten direct labor
Custom Furniture manufactures a small table and a large table. The small table sells for$900, has variable costs of$560 pertable, and takes ten direct labor hours to manufacture. The large table sells for$1,500, has variable costs of$980, and takes eight direct labor hours to manufacture. The company has a maximum of5,000 direct labor hours per month when operating at full capacity. If there are no constraints on sales of either of theproducts, and the company could choose any proportions of product mix that theywanted, the maximum contribution margin that the company could earn willbe:
A. $425,000
B. $330,000
C. $325,000
D. $250,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started