Your Company produces three products, with costs and selling prices as follows: Demand in units Selling price per unit Variable costs ratio Machine hours per unit Product A Product B Product C 25,000 $30 60% 18,000 $15 40% 25,000 $20 75% 3 1 Your Company has a limit of 80,000 machine hours for the constrained resource. What is the maximum contribution margin Your Company can make? O $225,000 $363,000 O $325,000 O $322,500

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 14MC: A company produces two products. E and F in batches of 100 units. The production and cost data are:...
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Your Company produces three products, with costs and selling prices as follows:
Product A Product B Product C
Demand in units
Selling price per unit
Variable costs ratio
Machine hours per unit
25,000
$30
60%
18,000
$20
25,000
$15
75%
40%
3
2
1
Your Company has a limit of 80,000 machine hours for the constrained resource. What is the maximum contribution margin Your Company can make?
$225,000
$363,000
O $325,000
O $322,500
Transcribed Image Text:Your Company produces three products, with costs and selling prices as follows: Product A Product B Product C Demand in units Selling price per unit Variable costs ratio Machine hours per unit 25,000 $30 60% 18,000 $20 25,000 $15 75% 40% 3 2 1 Your Company has a limit of 80,000 machine hours for the constrained resource. What is the maximum contribution margin Your Company can make? $225,000 $363,000 O $325,000 O $322,500
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