The Clapton Company Manufactures Two Products: Alpha and Beta

question 1

Multiple Choice

The Clapton Company manufactures two products: Alpha and Beta.The costs and revenues are as follows: Total demand for Alpha is 10,000 units and for Beta is 6,000 units.Machine time is a scarce resource.During the year,50,000 machine hours are available.Alpha requires 4 machine hours per unit,while Beta requires 2.5 machine hours per unit.
What is the maximum contribution margin Clapton can achieve during a year?

• A)$444,250
• B)$1,014,000
• C)$488,000
• D)$855,500

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