Buchnell Manufacturing has 80,600 labor hours available for producing M and N. Consider the following...
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Accounting
Buchnell Manufacturing has 80,600 labor hours available for producing M and N. Consider the following information:
| Product M | Product N | |
| Required labor time per unit (hours) | 5 | 6 |
| Maximum demand (units) | 6,200 | 8,600 |
| Contribution margin per unit | $ 12.00 | $ 12.60 |
| Contribution margin per labor hour | $2.40 | $ 2.10 |
If Buchnell follows proper managerial accounting practices in terms of setting a production schedule, how much contribution margin would the company expect to generate?
$72,960.
$177,960.
$178,560.
$182,760.
None of these.
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