Consider the following production and cost data for two products, Big and Little: Big Little Demand in units 6,000 10,000 Contribution margin per unit $24 $18 Machine-hours needed per unit 2 МН З МН Labor hours needed per unit 6 DLH 4 DLH The company has 36,000 direct labor hours available each period. What is the largest possible total contribution margin that can be realized each period? O $162,000 O $144,000 O $180,000 O $288,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 2BE: Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per...
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Consider the following production and cost data for two products, Big and Little:
Big
Little
Demand in units
6,000
10,000
Contribution margin per unit
$24
$18
Machine-hours needed per unit
2 ΜΗ
3 ΜΗ
Labor hours needed per unit
6 DLH
4 DLH
The company has 36,000 direct labor hours available each period. What is the largest possible total contribution margin that can be realized each period?
O $162,000
$144,000
O $180,000
O $288,000
Transcribed Image Text:Consider the following production and cost data for two products, Big and Little: Big Little Demand in units 6,000 10,000 Contribution margin per unit $24 $18 Machine-hours needed per unit 2 ΜΗ 3 ΜΗ Labor hours needed per unit 6 DLH 4 DLH The company has 36,000 direct labor hours available each period. What is the largest possible total contribution margin that can be realized each period? O $162,000 $144,000 O $180,000 O $288,000
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