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The Garrison Company Manufactures Two Products: Oxy Cleaner and Sonic

Question 77

Multiple Choice

The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner.The costs and revenues are as follows:
oxy Cleaner  Sonic Cleaner  Sales Price $75$44 Variable cost per unit 4021\begin{array} { | l | r | r | } \hline &ox y \text { Cleaner } & \text { Sonic Cleaner } \\\hline \text { Sales Price } & \$ 75 & \$ 44 \\\hline \text { Variable cost per unit } & 40 & 21 \\\hline\end{array}
Total demand for Oxy is 10,000 units and for Sonic is 6,000 units.Machine time is a scarce resource.During the year,50,000 machine hours are available.Oxy requires 4 machine hours per unit,while Sonic requires 2.5 machine hours per unit.What is the maximum contribution margin Garrison can achieve during a year?


A) $444,250.
B) $1,014,000.
C) $488,000.
D) $855,500.

Correct Answer:

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