The Following Are Production and Cost Data for Two Products

question 48

Multiple Choice

The following are production and cost data for two products, buckets and pails, produced in batches of 600 each. $\begin{array}{lrr}&\text { Buckets }&\text { Pails }\\\text { Contribution margin per batch } & \$ 360 & \$ 250 \\\text { Machine set-ups needed per batch } & 14 & 9\end{array}$ The company can only perform 9,450 set-ups each period, yet there is unlimited demand for each product. What is the maximum contribution margin for the year?

• A) $366,000
• B) $243,000
• C) $1,050
• D) $262,500

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