Custom Furniture manufactures a small table and a large table. The small table sells for $800, has variable costs of $520 per table, and takes eight direct labor hours to manufacture. The large table sells for $1,200, has variable costs of $720, and takes sixteen direct labor hours to manufacture. The company has a maximum of 4,800 direct labor hours per month when operating at full capacity. If there are no constraints on sales of either product, and the company could choose any proportions of product mix that they wanted, what is the maximum contribution margin the company could earn?
A) $122,000
B) $176,000
C) $154,500
D) $168,000
Correct Answer:
Verified
Q96: A company sells two products with
Q97: Sports Hats, Etc. has two product
Q98: Sports Hats, Etc. has two product
Q99: The income statement for Sweet Dreams
Q100: Shine Bright Company has three product
Q102: A company sells two products with
Q103: Dong Fang Company fabricates inexpensive automobiles
Q104: Dong Fang Company fabricates inexpensive automobiles
Q105: Clay Corporation manufactures two styles of
Q106: Custom Furniture manufactures a small table and
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents