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Urgent General Electric manufactures two types of refrigerators: 1-Door and 2-Door. Selected data related to each type of refrigerator is as follows: Total fixed manufacturing
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General Electric manufactures two types of refrigerators: 1-Door and 2-Door. Selected data related to each type of refrigerator is as follows: Total fixed manufacturing overhead is $500,000. Most of the manufacturing process is done by machines. For 2023, there is a maximum of 20,000 machine hours available. Management believes that demand is limited to 2,000 1-Door refrigerators and 3,000 2-Door refrigerators in 2023. 25. At the optimum solution (constrained by 20,000MHs ), what is the total contribution margin from selling 1-Door and 2-Door refrigerators? a. $328,000 b. $338,000 c. $318,000 d. $308,000 26. What is the maximum total contribution margin (constrained by 20,000 MHs) if there is unlimited demand for 1-Door and 2-Door refrigerators? A. $133,333 B. $233,333 C. $333,333 D. $433,333 Step by Step Solution
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