Newton Manufacturing has 38,000 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)		6,200				9,200
Contribution margin per unit	$	5.00			$	5.40
Contribution margin per labor hour	$	2.50			$	1.80

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

Multiple Choice

• $29,800.

• $75,680.

• $77,080.

• $80,680.

• None of the answers is correct