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Todd Company Produces Two Products,P and Q

Question 74

Multiple Choice

Todd Company produces two products,P and Q.P sells for $7.50 per unit; Q sells for $6.50 per unit.Variable costs for P and Q are respectively,$4.00 and $6.00.There are 6300 direct labour hours per month available for producing the two products.Product P requires 5.00 direct labour hours per unit and Product Q requires 5.00 direct labour hours per unit.The company can sell as many of either product as it can produce.What is the maximum monthly contribution margin that Todd can generate under the circumstances? Round to nearest whole dollar.


A) $4410
B) $22,050
C) $3150
D) $630

Correct Answer:

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