Newton Manufacturing has 38,300 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)		6,800				8,900
Contribution margin per unit	$	11.00			$	11.40
Contribution margin per labor hour	$	5.50			$	3.80

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

• $165,260.

• $168,660.

• None of the answers is correct.

• $176,260.

• $73,960.