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

---

Definitions:

Debtor

An individual or entity that owes money to another called the creditor.

Involuntary Filings

Legal proceedings initiated by creditors against a debtor who fails to pay owed debts, often leading to bankruptcy.

Steady Income

Regular and consistent earnings from employment, investments, or other sources.

Corporations

Legal entities that are separate from their owners, providing limited liability protection, and having the ability to enter into contracts, sue, and be sued.