Newton Manufacturing has 71,900 labor hours available for producing M and N. Consider the following information:

	Product M				Product N
Required labor time per unit (hours)		4				5
Maximum demand (units)		7,100				9,100
Contribution margin per unit	$	6.00			$	6.50
Contribution margin per labor hour	$	1.50			$	1.30

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

• $41,600.

• $98,750.

• $99,150.

• $101,750.

• NONE OF THESE ANSWERS ARE CORRECT