Tel Systems manufactures 2 products TLA and BIT. TLA selling price is $20/unit and variable costs are $13/unit. BIT selling price is $22/unit and variable costs are $10/unit. TLA requires 2 machine hours and BIT 4 machine hours. Demand for TLA is 2,000 units and for BIT is 1,600 units. Tel Systems works 5,000 hours. What is the contribution margin of TLA?

a.

$4

O b. $7

c. not enough data to answer

O d. $3

O e. $12

O f. $20

O g. $8