Underwood, Inc

Multiple Choice

Underwood, Inc. manufactures two products. It currently has 2,000 hours of direct labor and 1,000 hours of machine time available per month. The table below lists the contribution margin, labor and machine time requirements, and demand for each product. What is the total contribution margin if Underwood, Inc. prioritizes production according to its limited resources?

A) $39,000
B) $15,000
C) $24,000
D) $19,500