Widgeon Co. manufactures three products: Bales; Tales; and Wales. The selling prices are: $55; $78; and $32, respectively. The variable costs for each product are: $20; $50; and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process, Tales take 7 hours, and Wales take 1 hour. Assuming that Widgeon Co. can sell all of the products they can make, what is the maximum contribution margin they can earn per month?
A) $49,000
B) $70,000
C) $56,000
D) $34,000
Correct Answer:
Verified
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