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The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner. The costs and revenues are as follows: Oxy Cleaner Sonic Cleaner Sales Price $
The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner. The costs and revenues are as follows:
Oxy Cleaner | Sonic Cleaner | |||||
Sales Price | $ | 90 | $ | 50 | ||
Variable cost per unit | 45 | 20 | ||||
Total demand for Oxy is 11,300 units and for Sonic is 7,300 units. Machine time is a scarce resource. During the year, 63,000 machine hours are available. Oxy requires 5 machine hours per unit, while Sonic requires 3.0 machine hours per unit. What is the maximum contribution margin Garrison can achieve during a year?
A $1,382,000.
B $1,197,000.
C $727,500.
D $588,900.
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