Henke Company Has Only 30,000 Hours of Machine Time Each

question 76

Multiple Choice

Henke Company has only 30,000 hours of machine time each month to manufacture its two products.Product X has a contribution margin of $60,and Product Y has a contribution margin of $72.Product X requires 6 hours of machine time,and Product Y requires 10 hours of machine time.If Thomas Company wants to dedicate 85 percent of its machine time to the product that will provide the most income,the company will have a total contribution margin of

• A)$216,000
• B)$228,600.
• C)$287,400
• D)$300,000

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