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The following are production and cost data for two products, A and B.

Product A Product B

Contribution margin per unit $450 $340

Machine set-ups needed per unit 25 20

The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product. What is the maximum contribution margin for the year?

A. $420,000

B. $18,050,000

C. $204,000

D. $216,000

Accounting Basics, Accounting

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