Assume a company makes only three products, A, B, and C: Estimated customer demand in units Selling price per unit Variable cost per unit Machine-hours per unit Product A Product B Product C 700 600 800 $ 80 $65 $45 $ 26 $ 20 3.0 1.25 $35 2.5 The company has only 1,850 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume a company makes only three products, A, B, and C:
Estimated customer demand in units
Selling price per unit
Variable cost per unit
Machine-hours per unit
Multiple Choice
The company has only 1,850 machine-hours available. What is the highest total contribution margin that the company can earn if it makes
optimal use of its constrained resource?
O
O
C
$35,300
$36,300
$37,300
Product A Product B Product C
800
700
$80
600
$ 65
$45
$ 35
$20
2.5
1.25
$38,300
$26
3.0
Transcribed Image Text:Assume a company makes only three products, A, B, and C: Estimated customer demand in units Selling price per unit Variable cost per unit Machine-hours per unit Multiple Choice The company has only 1,850 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? O O C $35,300 $36,300 $37,300 Product A Product B Product C 800 700 $80 600 $ 65 $45 $ 35 $20 2.5 1.25 $38,300 $26 3.0
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