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VC A company can produce and sell only one of the following two products: Sales Machine Hours Sale Price Variable Fixed Required per Unit per

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VC A company can produce and sell only one of the following two products: Sales Machine Hours Sale Price Variable Fixed Required per Unit per Unit Cost per Unit Cost per Unit Product A 5 (2,000) = 10,000 $140 $50 $30 Product B 3(2,000) = 6,000 $98 $26 $22 If the company has limited machine capacity of 2,000 hours, what is the total contribution margin of the product it should produce in order to maximize net income? a. $48,000 b. $36,000 cm = sales - variable c. $42.000

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