Smith Company owns 3 machines that provide 12,600 machine hours per year. Part X requires 1.5 hours, and Part Y requires 0.5 hour. The respective unit contribution margins for Part X and Y are $48 and $33. If a maximum of 15,000 units of each part can be sold, what is the maximum contribution margin? a. $950,700 b. $685,800 c. $643,200 d. $658,200
Smith Company owns 3 machines that provide 12,600 machine hours per year. Part X requires 1.5 hours, and Part Y requires 0.5 hour. The respective unit contribution margins for Part X and Y are $48 and $33. If a maximum of 15,000 units of each part can be sold, what is the maximum contribution margin? a. $950,700 b. $685,800 c. $643,200 d. $658,200
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Smith Company owns 3 machines that provide 12,600 machine hours per year. Part X requires 1.5 hours, and Part Y
requires 0.5 hour. The respective unit contribution margins for Part X and Y are $48 and $33. If a maximum of 15,000
units of each part can be sold, what is the maximum contribution margin?
a. $950,700
b. $685,800
c. $643,200
d. $658,200
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