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Daisley Products Inc

Question 15

Multiple Choice

Daisley Products Inc.makes two products-B17U and R94X.Product B17U's selling price is $110.00 and its unit variable cost is $66.00.Product R94X's selling price is $238.00 and its unit variable cost is $142.80.The monthly demand is 1, 290 units for product B17U and 490 units for R94X.The constrained resource is a particular machine that is available for 10, 300 minutes each month.Each unit of product B17U requires 5 minutes on this machine and each unit of product R94X requires 14 minutes on this machine. What is the maximum contribution margin the company can earn per month?


A) $82, 940
B) $76, 920
C) $80, 023
D) $103, 408

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