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A Company Sells Two Products with Information as Follows The Products Are Machine Made

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A company sells two products with information as follows: AB Sales price per unit $11.00$26.00 Variable cost per unit $10.00$10.00\begin{array} { | l | c | c | } \hline & \mathrm { A } & \mathrm { B } \\\hline \text { Sales price per unit } & \$ 11.00 & \$ 26.00 \\\hline \text { Variable cost per unit } & \$ 10.00 & \$ 10.00 \\\hline\end{array} The products are machine made.Four units of product A can be made with one machine hour,and two units of product B can be made with one machine hour.The company has a maximum of 4000 machine hours available per month.The company can sell up to 17,000 units of product A per month and up to 3000 units of product B for the month.What is the maximum amount of contribution margin that the company could earn in a month given the stated constraints?

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Definitions:

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Selling Price

is the amount of money for which a product or service is sold to customers.

Breakeven Analysis

It's a financial calculation to determine when a project or business will be able to cover all its costs and begin to make a profit.

Cost Control Measures

Strategies or actions taken by a company to maintain or reduce costs in order to improve profitability.

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