Martorell Products Inc

Multiple Choice

Martorell Products Inc. makes two products—C39X and H08L. Product C39X's selling price is $54.00 and its unit variable cost is $43.20. Product H08L's selling price is $496.00 and its unit variable cost is $446.40. The monthly demand is 2,500 units for product C39X and 510 units for H08L. The constrained resource is a particular machine that is available for 10,300 minutes each month. Each unit of product C39X requires 3 minutes on this machine and each unit of product H08L requires 16 minutes on this machine.
-What is the maximum contribution margin the company can earn per month?

A) $35,680
B) $34,396
C) $33,000
D) $52,296