Solved

Luter Products Inc

Question 38

Multiple Choice

Luter Products Inc.makes two products-G16F and C53Z.Product G16F's selling price is $308.00 and its unit variable cost is $215.60.Product C53Z's selling price is $84.00 and its unit variable cost is $58.80.The monthly demand is 570 units for product G16F and 2, 200 units for C53Z.The constrained resource is a particular machine that is available for 10, 100 minutes each month.Each unit of product G16F requires 14 minutes on this machine and each unit of product C53Z requires 3 minutes on this machine. What is the maximum contribution margin the company can earn per month?


A) $70, 476
B) $108, 108
C) $78, 540
D) $74, 890

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents