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The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner. The costs and revenues are as follows: Oxy CleanerSonic CleanerSales Price$70$42Variable cost per unit4021
The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner. The costs and revenues are as follows:
Oxy CleanerSonic CleanerSales Price$70$42Variable cost per unit4021
Total demand for Oxy is 11,400 units and for Sonic is 7,400 units. Machine time is a scarce resource. During the year, 64,000 machine hours are available. Oxy requires 4 machine hours per unit, while Sonic requires 2.0 machine hours per unit.
What is the maximum contribution margin Garrison can achieve during a year?
- $524,400.
- $1,108,800.
- $497,400.
- $1,152,000.
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