Question
Zantaq Inc has 5,400 machine hours available each month. The following information on the company's three products is available: Bookcases Chairs Side Tables Contribution margin
Zantaq Inc has 5,400 machine hours available each month. The following information on the company's three products is available:
Bookcases | Chairs | Side Tables | |||||||||
Contribution margin per unit | $ | 15.00 | $ | 18.00 | $ | 7.50 | |||||
Machine hours per unit | 3 | 2 | 1 | ||||||||
The market demand is limited to 2,000 units of each of the three products. What is the maximum possible contribution margin that Zantaq could make in any month?
$81,000.
$46,500.
$43,000.
$51,000.
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