A company can produce and sell only one of the following two products. Product Machine Required 1 3 2 Hours Contribution Margin Per Unit $30 $25 2 If the company has a machine capacity of 4,000 hours, what is the total contribution margin of the product it should produce to maximize net income? a $50,000 b. $32,000 c. $48,000 d. $40,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A company can produce and sell only one of the following two
products.
Product
Machine
Required
1
3
2
Hours Contribution Margin Per
Unit
$30
$25
2
If the company has a machine capacity of 4,000 hours, what is
the total contribution margin of the product it should produce to
maximize net income?
a $50,000
b. $32,000
c. $48,000
d. $40,000
Transcribed Image Text:A company can produce and sell only one of the following two products. Product Machine Required 1 3 2 Hours Contribution Margin Per Unit $30 $25 2 If the company has a machine capacity of 4,000 hours, what is the total contribution margin of the product it should produce to maximize net income? a $50,000 b. $32,000 c. $48,000 d. $40,000
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