The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner.The costs and revenues are as follows:
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:
Verified
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