Your Company has a limit of 65,000 machine hours for the production. It produces three products, with costs and sellingprices as follows:ProductsCDemand in units20,00018,00015,000Selling price per unit$30$20$15CM ratios35%25%60%3.3MH per unitWhat is the maximum contribution margin Your Company can make?

Contribution means the difference between the selling price and variable cost . Fixed cost remain…

Your Company has a limit of 65,000 machine hours for the production. It produces three products, with costs and selli prices as follows: Products A C Demand in units 18,000 15,000 20,000 $30 Selling price per unit $20 $15 CM ratios 35% 25% 60% 3 3. MH per unit What is the maximum contribution margin Your Company can make?

Your Company has a limit of 65,000 machine hours for the production. It produces three products, with costs and selli prices as follows: Products A C Demand in units 18,000 15,000 20,000 $30 Selling price per unit $20 $15 CM ratios 35% 25% 60% 3 3. MH per unit What is the maximum contribution margin Your Company can make?

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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Question

Your Company has a limit of 65,000 machine hours for the production. It produces three products, with costs and selling
prices as follows:
Products
C
Demand in units
20,000
18,000
15,000
Selling price per unit
$30
$20
$15
CM ratios
35%
25%
60%
3.
3
MH per unit
What is the maximum contribution margin Your Company can make?

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