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The following are production and cost data for two products, buckets and pails. Buckets Pails Contribution margin per unit $450 $280 Machine set-ups needed per
The following are production and cost data for two products, buckets and pails.
Buckets Pails
Contribution margin per unit $450 $280 Machine set-ups needed per unit 20 14
The company can only perform 14,000 set-ups each period yet there is unlimited demand for each product. What is the total maximum contribution margin for the year if 14,000 setups are made? (Hint, when there is a constraint choose the product with the higher CM per constraint).
$315,000
$35,000
$280,000
$595,000
Some other amount
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