ABC Company has only 25,000 hours of machine time each month to manufacture its two products. Product X has a contribution margin of P50, and Product Y has a contribution margin of P64. Product X requires 5 hours of machine time, and Product Y requires 8 hours of machine time. 14) If ABC Company wants to dedicate 80 percent of its machine time to the product that will provide the most income, the company will have a total contribution margin of a. P250,000. b. P240,000. c. P210,000. d. P200,000.

ABC Company has only 25,000 hours of machine time each month to manufacture its two products. Product X has a contribution margin of P50, and Product Y has a contribution margin of P64. Product X requires 5 hours of machine time, and Product Y requires 8 hours of machine time. 14) If ABC Company wants to dedicate 80 percent of its machine time to the product that will provide the most income, the company will have a total contribution margin of a. P250,000. b. P240,000. c. P210,000. d. P200,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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