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The following is the production and cost data for two products. A and B Product A: Contribution margin per unit: $450 Machine setups needed/unit: 25
The following is the production and cost data for two products. A and B Product A: Contribution margin per unit: $450 Machine setups needed/unit: 25 Product B: Contribution margin per unit: $280 Machine set-ups needed/unit: 14 The company can do 14,000 set-ups each period, yet there is unlimited demand for each product. What is the maximum contribution margin for the year? A) $450,000 B) $252,000 C) $156,800 D) $280,000
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