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
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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?
Transcribed Image Text: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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