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:
Verified
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