Martorell Products Inc. makes two products—C39X and H08L. Product C39X's selling price is $54.00 and its unit variable cost is $43.20. Product H08L's selling price is $496.00 and its unit variable cost is $446.40. The monthly demand is 2,500 units for product C39X and 510 units for H08L. The constrained resource is a particular machine that is available for 10,300 minutes each month. Each unit of product C39X requires 3 minutes on this machine and each unit of product H08L requires 16 minutes on this machine.
-What is the maximum contribution margin the company can earn per month?
A)$35,680
B)$34,396
C)$33,000
D)$52,296

Question

Quizplus · Accepted Answer

The maximum contribution margin is calculated based on the company's sales, variable costs, and production capacity. The correct choice is the one that aligns with the given financial data and constraints.