Shorr Corporation's two products have the following characteristics: The constrained resource is a particular machine that is available for 9,900 minutes each month. Each unit of product U29D requires 16 minutes on this machine and each unit of product X43P requires 2 minutes on this machine.
-What is the maximum contribution margin the company can earn per month?
A)$60,720
B)$72,816
C)$41,712
D)$50,695

Question

Shorr Corporation's two products have the following characteristics:  The constrained resource is a particular machine that is available for 9,900 minutes each month. Each unit of product U29D requires 16 minutes on this machine and each unit of product X43P requires 2 minutes on this machine.
-What is the maximum contribution margin the company can earn per month?
A)$60,720 
B)$72,816 
C)$41,712 
D)$50,695

Quizplus · Accepted Answer

The maximum contribution margin the company can earn per month is $60,720. This is calculated by multiplying the maximum sales volume of 12,144 units by the contribution margin per unit of $5.

Shorr Corporation's Two Products Have the Following Characteristics: the Constrained