FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner. The costs and revenues are as follows:
Sonic Cleaner
Sales Price
Variable cost per unit
Oxy Cleaner
$
80
30
$ 48
20
Total demand for Oxy is 10,700 units and for Sonic is 6,700 units. Machine time is a scarce resource. During the year, 57,000 machine
hours are available. Oxy requires 5 machine hours per unit, while Sonic requires 2.0 machine hours per unit.
What is the maximum contribution margin Garrison can achieve during a year?
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Transcribed Image Text:The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner. The costs and revenues are as follows: Sonic Cleaner Sales Price Variable cost per unit Oxy Cleaner $ 80 30 $ 48 20 Total demand for Oxy is 10,700 units and for Sonic is 6,700 units. Machine time is a scarce resource. During the year, 57,000 machine hours are available. Oxy requires 5 machine hours per unit, while Sonic requires 2.0 machine hours per unit. What is the maximum contribution margin Garrison can achieve during a year?
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