Newton Manufacturing Has 31,000 Labor Hours Available for Producing M

Multiple Choice

Newton Manufacturing has 31,000 labor hours available for producing M and N. Consider the following information:

If Newton follows proper managerial accounting practices in terms of setting a production schedule, how much contribution margin would the company expect to generate?

A) $31,450.
B) $63,100.
C) $66,700.
D) $78,100.
E) None of the answers is correct.