Lewis Company Has Only 25,000 Hours of Machine Time Each

question 32

Multiple Choice

Lewis Company has only 25,000 hours of machine time each month to manufacture its two products.Product X has a contribution margin of $50,and Product Y has a contribution margin of $64.Product X requires 5 hours of machine time,and Product Y requires 8 hours of machine time.If Lewis Company wants to dedicate 80 percent of its machine time to the product that will provide the most income,the company will have a total contribution margin of

• A)$250,000.
• B)$240,000.
• C)$210,000.
• D)$200,000.

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Definitions:

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A party possessing a negotiable instrument, like a check, who has certain rights to payment free from most defenses or claims.

Check Alteration

The unauthorized modification of details on a check, such as the amount or payee, usually for fraudulent purposes.

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An informal group or organization formed by individuals who share a common interest in drinking coffee and social interaction.

Big Bank

A large, influential financial institution capable of exerting significant impact on the national or global economy.