Assume a company makes only three products, A, B, and C. Product A Product B Product C 700 600 800 $ 80 $ 65 $45 $ 35 $ 20 2.5 1.25 The company has only 2.850 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? Estimated customer demand in units Selling price per unit Variable cost per unit Machine-hours per unit Multiple Choice O $52,800 $59,800 $55.800 $57,800 $26 3.0

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Assume a company makes only three products, A, B, and C.
Product A Product B Product C
Estimated customer demand in units
Selling price per unit
800
700
$ 80
$ 45
Variable cost per unit
$ 35
$ 20
Machine-hours per unit
2.5
1.25
The company has only 2.850 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource?
Multiple Choice
O
O
$52.800
$59,800
$55,000
$57,800
600
$ 65
$ 26
3.0
Transcribed Image Text:Assume a company makes only three products, A, B, and C. Product A Product B Product C Estimated customer demand in units Selling price per unit 800 700 $ 80 $ 45 Variable cost per unit $ 35 $ 20 Machine-hours per unit 2.5 1.25 The company has only 2.850 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? Multiple Choice O O $52.800 $59,800 $55,000 $57,800 600 $ 65 $ 26 3.0
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