Consider the following production and cost data for two products, H and C: Product H $120 10 minutes Product C $112 8 minutes Contribution margin per unit Machine minutes needed per unit A total of 60,000 machine minutes are available each period and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period? Multiple Cholce $780,000 $1,560,000 $840,000 $720,000

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter13: The Balanced Scorecard: Strategic-based Control
Section: Chapter Questions
Problem 8E: Hatch Manufacturing produces multiple machine parts. The theoretical cycle time for one of its...
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Consider the following production and cost data for two products, H and C:
Product H
$120
10 minutes
Product C
$112
8 minutes
Contribution margin per unit
Machine minutes needed per
unit
A total of 60,000 machine minutes are available each period and there is unlimited demand for each product. What is the largest possible total contribution
margin that can be realized each period?
Multiple Choice
O
$780,000
$1,560,000
$840,000
$720,000
Transcribed Image Text:Consider the following production and cost data for two products, H and C: Product H $120 10 minutes Product C $112 8 minutes Contribution margin per unit Machine minutes needed per unit A total of 60,000 machine minutes are available each period and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period? Multiple Choice O $780,000 $1,560,000 $840,000 $720,000
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