Accounting: What the Numbers Mean 11th Edition by Wayne McManus,Daniel Viele,David Marshall

تمرين 16

The product mix decision Product A has a contribution margin of $300 per unit and requires six hours of machine time. Product B requires eight hours of machine time and provides $400 of contribution margin per unit.
Required:
If the capacity of machine time is limited to 1,200 hours and only one product can be produced, what is the maximum amount of contribution that could be generated?