I'm uncertain to how to about calculating the maximum contribution margin that could be earned....
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Accounting
I'm uncertain to how to about calculating the maximum contribution margin that could be earned. Any help will be greatly appreciated.
A company sells two products with information as follows: Sales price per unit Variable cost per unit $11 $10 $20 $10 The products are machine made. Four units of product A can be made with one machine hour, and two units of product B can be made with one machine hour. The company has a maximum of 5,000 machine hours available per month. The company can sell up to 17,000 units of product A per month and up to 3,000 units of product B for the month. What is the maximum amount of contribution margin that the company could earn in a month given the stated constraints? O A. $14,000 O B. $30,000 C. $44,000 OD. $17,000Get Answers to Unlimited Questions
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