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Sunland Industries manufactures chairs and tables that are in high demand by local office furniture stores. Following is information for each of these products: Selling
Sunland Industries manufactures chairs and tables that are in high demand by local office furniture stores. Following is information for each of these products: Selling price per item Variable cost per item Contribution margin per item Machine hours per item O $8450 O $9250 O $14060 O $9750 Chairs Save for Later $80.00 67.00 $13.00 1.60 Tables $94.00 79.00 $15.00 Sunland has 1040 machine hours available each month. The demand for chairs is 620 units per month and the demand for tables is 400 units per month. If Sunland allocates its production capacity between the chairs and tables so that it maximizes the company's contribution margin, what will the total contribution margin be? 1.60
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