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The following are production and cost data for two products, buckets and pails.

Buckets Pails
Contribution margin per unit $450 $280
Machine set-ups needed per unit 20 14

The company can only perform 14,000 set-ups each period yet there is unlimited demand for each product. What is the maximum contribution margin for the year?

A. $35,000

B. $595,000

C. $280,000

D. $315,000

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M943101

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