The Following Are Production and Cost Data for Two Products

Multiple Choice

The following are production and cost data for two products, A and B, produced in batches of 100 units. $\begin{array}{lrr}&\text { Product A }&\text { Product B }\\\text { Contribution margin per batch } & \$ 450 & \$ 340 \\\text { Machine set-ups needed per batch } & 25 & 20\end{array}$ The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product.What is the incremental profit from producing Product A instead of Product B for the year?

A) $216,000
B) $204,000
C) $12,000
D) $54,000