The Following Are Production and Cost Data for Two Products

question 109

Multiple Choice

The following are production and cost data for two products, buckets and pails, produced in batches of 600 each. $\begin{array}{lcr}& \text { Buckets } & \text { Pails } \\\text { Contribution margin per batch } & \$ 360 & \$ 250 \\\text { Machine set-ups needed per batch } &14 & 9\end{array}$ 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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Definitions:

Inflation

The frequency at which the overall pricing of goods and services heightens, eroding the ability to buy.

Price Level

A measure indicating the average price of goods and services in an economy, often compared over time to assess inflation or deflation.

Inflation

The rate at which the cost of goods and services goes up, thereby reducing the purchasing capacity.

Period

A length or portion of time.