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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Definitions:

Teratogen

Any agent or factor that can cause malformation of an embryo or fetus, which includes certain chemicals, drugs, and infections.

Artificial Sweetener

Substances used to sweeten foods and beverages that contain little to no calories, used as an alternative to sugar for weight control or diabetes management.

Fetus

a developing mammal or human from the end of the embryonic stage until birth.

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after being repeatedly exposed to it.