A company sells two products with information as follows: $$\begin{array} { | l | r | r | }
\hline & \mathrm { A } & \mathrm { B } \
\hline \text { Sales price per unit } & \$ 11.00 & \$ 20.00 \
\hline \text { Variable cost per unit } & \$ 10.00 & \$ 12.00 \
\hline
\end{array}$$ The products are machine made.Four units of product A can be made with one machine hour,and two units of product B can be made with one machine hour.The company has a maximum of 3000 machine hours available per month.The company can sell up to 17,000 units of product A per month and up to 3000 units of product B for the month.What is the maximum amount of contribution margin that the company could earn in a month given the stated constraints?

Question

A company sells two products with information as follows: $$\begin{array} { | l | r | r | } 
\hline & \mathrm { A } & \mathrm { B } \
\hline \text { Sales price per unit } & \$ 11.00 & \$ 20.00 \
\hline \text { Variable cost per unit } & \$ 10.00 & \$ 12.00 \
\hline
\end{array}$$ The products are machine made.Four units of product A can be made with one machine hour,and two units of product B can be made with one machine hour.The company has a maximum of 3000 machine hours available per month.The company can sell up to 17,000 units of product A per month and up to 3000 units of product B for the month.What is the maximum amount of contribution margin that the company could earn in a month given the stated constraints?

Quizplus · Accepted Answer

The Answer of A company sells two products with information as follows: $$\begin{array} { | l | r | r | } 
\hline & \mathrm { A } & \mathrm { B } \
\hline \text { Sales price per unit } & \$ 11.00 & \$ 20.00 \
\hline \text { Variable cost per unit } & \$ 10.00 & \$ 12.00 \
\hline
\end{array}$$ The products are machine made.Four units of product A can be made with one machine hour,and two units of product B can be made with one machine hour.The company has a maximum of 3000 machine hours available per month.The company can sell up to 17,000 units of product A per month and up to 3000 units of product B for the month.What is the maximum amount of contribution margin that the company could earn in a month given the stated constraints?

A Company Sells Two Products with Information as Follows The Products Are Machine Made