Genius Inc. sells three products that are made in the same location and using the same equipment. Genius only has 5,000 hours available on the machines that are used. Fixed expenses are $270,000.

Product A Product B Product C

Contribution Margin $140 $220 $300

Machine Hours needed 2 4 6

Demand 1,000 600 300

What is the operating income assuming the maximum use of constraints is followed?

A) $103,000

B) Loss of $3,000

C) $32,000

D) $40,000