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Kellerman Detailing Service provides two types of car detailing packages: the standard and the deluxe. Selected data related to each package is as follows: 8.
Kellerman Detailing Service provides two types of car detailing packages: the standard and the deluxe. Selected data related to each package is as follows: 8. Standard $85 Sales price Direct materials Direct labour Variable overhead Direct labour hours Deluxe $200 10 40 15 15 Most of the car detailing is done by hand. For the upcoming year, there is a maximum of 4050 direct labour hours available. Management believes that the demand for both the standard and deluxe detailing is limited to 900 each per year. If the company maximises profits, what is the maximum contribution margin the company could have in the upcoming year? a. S 67 500 b. $175 500 c. $162 000 d. S 60 750
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