Assume a company makes only three products, A, B, and C: Selling price per unit Variable cost per unit Machine-hours per unit Product A Product B Product C $ 80 $ 65 $ 51 $ 35 $ 26 $ 20 2.5 3.0 1.25 The company has only 2,900 machine-hours available and unlimited demand for each of its three products. The highest tota company can earn if it makes optimal use of its constrained resource is closest to:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume a company makes only three products, A, B, and C:
Selling price per unit
Variable cost per unit
Machine-hours per unit
Multiple Choice
The company has only 2,900 machine-hours available and unlimited demand for each of its three products. The highest total contribution margin that the
company can earn if it makes optimal use of its constrained resource is closest to:
$46,400.
$52,200.
$369,170.
Product A Product B Product C
$ 80
$ 51
$
35
$ 20
2.5
1.25
$71,920.
$ 65
$ 26
3.0
Transcribed Image Text:Assume a company makes only three products, A, B, and C: Selling price per unit Variable cost per unit Machine-hours per unit Multiple Choice The company has only 2,900 machine-hours available and unlimited demand for each of its three products. The highest total contribution margin that the company can earn if it makes optimal use of its constrained resource is closest to: $46,400. $52,200. $369,170. Product A Product B Product C $ 80 $ 51 $ 35 $ 20 2.5 1.25 $71,920. $ 65 $ 26 3.0
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