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The Following Are Production and Cost Data for Two Products

Question 109

Multiple Choice

The following are production and cost data for two products, buckets and pails, produced in batches of 600 each.  Buckets  Pails  Contribution margin per batch $360$250 Machine set-ups needed per batch 149\begin{array}{lcr}& \text { Buckets } & \text { Pails } \\\text { Contribution margin per batch } & \$ 360 & \$ 250 \\\text { Machine set-ups needed per batch } &14 & 9\end{array} The company can only perform 9,450 set-ups each period, yet there is unlimited demand for each product.What is the maximum contribution margin for the year?


A) $366,000
B) $243,000
C) $1,050
D) $262,500

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