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

Multiple Choice

Buchnell Manufacturing has 31,000 labor hours available for producing M and N. Consider the following information: $\begin{array}{lcc}&\text { Product M }&\text { Product } \mathrm{N}\\\text { Required labor time per unit (hours) } & 2 & 3 \\\text { Maximum demand (units) } & 6,500 & 8,000 \\\text { Contribution margin per unit } & \$ 5.00 & \$ 5.70 \\\text { Contribution margin per labor hour } & \$ 2.50 & \$ 1.90\end{array}$ If Buchnell 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 other answers are correct.