Newhallville Manufacturing has 38,800 labor hours available for producing M and N. Consider the following information:

	Product M				Product N
Required labor time per unit (hours)		2				3
Maximum demand (units)		6,300				9,400
Contribution margin per unit	$	7.00			$	7.50
Contribution margin per labor hour	$	3.50			$	2.50

If Newhallville follows proper managerial accounting practices in terms of setting a production schedule, how much contribution margin would the company expect to generate?

Multiple Choice

• $114,600.

• $109,600.

• $107,600.

• $42,550.

• None of the answers is correct.

If Newhallville follows proper managerial accounting practices in terms of setting a production schedule, how much contribution margin would the company expect to generate?