General Electric manufactures two types of refrigerators: 1-Door and 2-Door. Selected data related to each type of refrigerator is as follows: 1-Door 2-Door Sales price $300 $400 Direct materials 25 50 Direct labor 30 40 Variable overhead 15 10 Machine hours 5 6 Total fixed manufacturing overhead is $500,000. Most of the manufacturing process is done by machines. For 2023, there is a maximum of 20,000 machine hours available. Management believes that demand is limited to 2,000 1-Door refrigerators and 3,000 2-Door refrigerators in 2023. 25. At the optimum solution (constrained by 20,000 MHs), what is the total contribution margin from selling 1-Door and 2-Door refrigerators? a. $328,000 b. $338,000 c. $318,000 d.$1,1 d. $308,000

26. What is the maximum total contribution margin (constrained by 20,000 MHs) if there is unlimited demand for 1-Door and 2-Door refrigerators?

A. $133,333

B. $233,333

C $333,333

1. $433,333