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Consider the Following Production and Cost Data for Two Products

Question 90

Multiple Choice

Consider the following production and cost data for two products, L and C:  Product L Product C Contribution margin per unit $130$120 Machine set-ups needed per unit 10 set-ups 8 set-ups \begin{array} { | l | l | l | } \hline & \text { Product } L & \text { Product } C \\\hline \text { Contribution margin per unit } & \$ 130 & \$ 120 \\\hline \text { Machine set-ups needed per unit } & 10 \text { set-ups } & 8 \text { set-ups } \\\hline\end{array} The company can only perform 65,000 machine set-ups each period due to limited skilled labour and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period?


A) $975,000.
B) $910,000.
C) $1,820,000.
D) $845,000.

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