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Nutmeg Corporation operates a manufacturing company with total available capacity per year of 204,000 minutes. Nutmeg produces two models of widgets, Premium and Superior. There
Nutmeg Corporation operates a manufacturing company with total available capacity per year of 204,000 minutes. Nutmeg produces two models of widgets, Premium and Superior. There is unlimited demand for each product. Information relating to the products is as follows:
Premium | Superior | |
Contribution margin per unit | $54 | $40 |
Machine minutes needed per unit | 12 | 8 |
What is the largest possible total contribution margin that can be realized each period?
A. | $1,938,000 | |
B. | $918,000 | |
C. | $969,000 | |
D. | $1,020,000 |
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