Consider the Following Production and Cost Data for Two Products

question 90

Multiple Choice

Consider the following production and cost data for two products, L and C: $$\begin{array} { | l | l | l | } \hline & \text { Product } L & \text { Product } C \\\hline \text { Contribution margin per unit } & \$ 130 & \$ 120 \\\hline \text { Machine set-ups needed per unit } & 10 \text { set-ups } & 8 \text { set-ups } \\\hline\end{array}$$ The company can only perform 65,000 machine set-ups each period due to limited skilled labour and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period?

• A)$975,000.
• B)$910,000.
• C)$1,820,000.
• D)$845,000.

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