Containers Galore sells two products with information as follows: Small containers: Price per unit - P12 Variable cost per unit - P10 Large containers: Price per unit - P20 Variable cost per unit - P12 Products are made by machines. 4 small containers can be made with one machine hour and 2 large containers can be made with one machine hour. The company has a maximum of 3,000 machine hours available per month. Assume there are no constraints on sales of either product, and the company could choose any product mix they wish. What is the maximum amount of contribution margin that the company could earn in a month?
Containers Galore sells two products with information as follows: Small containers: Price per unit - P12 Variable cost per unit - P10 Large containers: Price per unit - P20 Variable cost per unit - P12 Products are made by machines. 4 small containers can be made with one machine hour and 2 large containers can be made with one machine hour. The company has a maximum of 3,000 machine hours available per month. Assume there are no constraints on sales of either product, and the company could choose any product mix they wish. What is the maximum amount of contribution margin that the company could earn in a month?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Containers Galore sells two products with information as follows:
Small containers:
Price per unit - P12
Variable cost per unit - P10
Large containers:
Price per unit - P20
Variable cost per unit - P12
Products are made by machines. 4 small containers can be made with one machine hour and 2
large containers can be made with one machine hour. The company has a maximum of 3,000
machine hours available per month. Assume there are no constraints on sales of either product,
and the company could choose any product mix they wish. What is the maximum amount of
contribution margin that the company could earn in a month?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3f177076-233b-4285-9243-14928f45f77c%2Ff022db65-2775-4292-9336-11cf5cacb1ad%2Fin0ljzu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Containers Galore sells two products with information as follows:
Small containers:
Price per unit - P12
Variable cost per unit - P10
Large containers:
Price per unit - P20
Variable cost per unit - P12
Products are made by machines. 4 small containers can be made with one machine hour and 2
large containers can be made with one machine hour. The company has a maximum of 3,000
machine hours available per month. Assume there are no constraints on sales of either product,
and the company could choose any product mix they wish. What is the maximum amount of
contribution margin that the company could earn in a month?
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