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
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%
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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education