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A Company Sells Two Products with Information as Follows The Products Are Machine Made

Question 119

Multiple Choice

A company sells two products with information as follows: AB Sales price per unit $11.00$26.00 Variable cost per unit $10.00$10.00\begin{array} { | l | c | c | } \hline & \mathrm { A } & \mathrm { B } \\\hline \text { Sales price per unit } & \$ 11.00 & \$ 26.00 \\\hline \text { Variable cost per unit } & \$ 10.00 & \$ 10.00 \\\hline\end{array} The products are machine made.Four units of product A can be made with one machine hour,and two units of product B can be made with one machine hour.The company has a maximum of 4000 machine hours available per month.The company can sell up to 17,000 units of product A per month and up to 3000 units of product B for the month.What is the maximum amount of contribution margin that the company could earn in a month given the stated constraints?


A) $17,000
B) $58,000
C) $10,000
D) $48,000

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