Bricktan Incorporated makes three products, Basic, Classic, and Deluxe. The maximum Bricktan can sell is 75,000 units of Basic, 420,000 units of Classic, and 120,000 units of Deluxe. Bricktan has limited production capacit

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Bricktan Incorporated makes three products,
Basic, Classic, and Deluxe. The maximum
Bricktan can sell is 75,000 units of Basic,
420,000 units of Classic, and 120,000 units of
Deluxe. Bricktan has limited production capacity
of 900,000 machine hours. Machine hours per
unit are as follows: Basic, 1 hour; Classic, 1.25
hours; and Deluxe 2.5 hours. Contribution
margin per unit is $15 for Basic, $25 for Classic,
and $55 for Deluxe. What is the total
contribution margin if Bricktan chooses the most
profitable sales mix?
Select one:
a. $9,700,000.
b. $15,500,000.
c. $12,800,000.
d. $18,225,000.
e. $8,000,000.
Transcribed Image Text:Bricktan Incorporated makes three products, Basic, Classic, and Deluxe. The maximum Bricktan can sell is 75,000 units of Basic, 420,000 units of Classic, and 120,000 units of Deluxe. Bricktan has limited production capacity of 900,000 machine hours. Machine hours per unit are as follows: Basic, 1 hour; Classic, 1.25 hours; and Deluxe 2.5 hours. Contribution margin per unit is $15 for Basic, $25 for Classic, and $55 for Deluxe. What is the total contribution margin if Bricktan chooses the most profitable sales mix? Select one: a. $9,700,000. b. $15,500,000. c. $12,800,000. d. $18,225,000. e. $8,000,000.
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