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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 | $ | 85 | $ | 48 | ||
Variable cost per unit | 45 | 25 |
Total demand for Oxy is 11,200 units and for Sonic is 7,200 units. Machine time is a scarce resource. During the year, 62,000 machine hours are available. Oxy requires 5 machine hours per unit, while Sonic requires 2.5 machine hours per unit. What is the maximum contribution margin Garrison can achieve during a year?
$613,600.
$1,297,600.
$1,066,400.
$517,600.
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