TB MC Qu. 23-106 (Algo) JK Company produces two...

JK Company produces two products, Plush and Supreme. JK Company can sell all of the units it can produce for both products, but it has limited production capacity. Machine hours per unit are .25 hours for Plush and .50 hours for Supreme, and the company has 3,400 machine hours available. Contribution margin per unit is $228 for Plush and $314 for Supreme. What is the total contribution margin if JK chooses the most profitable sales mix?

Multiple Choice

• $1,400,800.

• $2,420,800.

• $2,801,600.

• $3,100,800.

• $4,270,400.