Mcbee Products Inc

Multiple Choice

Mcbee Products Inc. makes two products-C38S and V81Z. Product C38S's selling price is $91.00 and its unit variable cost is $72.80. Product V81Z's selling price is $200.00 and its unit variable cost is $180.00. The monthly demand is 890 units for product C38S and 680 units for V81Z. The constrained resource is a particular machine that is available for 10,000 minutes each month. Each unit of product C38S requires 7 minutes on this machine and each unit of product V81Z requires 10 minutes on this machine.
-What is the maximum contribution margin the company can earn per month?

A) $21,920
B) $29,798
C) $23,738
D) $22,869