A Company Sells Two Products with Information as Follows

question 48

Multiple Choice

A company sells two products with information as follows: Products are made by machine. 4 units of Product A can be made with one machine hour and 2 units of Product B can be made with one machine hour. The company has a maximum of 2,000 machine hours available per month. The company can sell up to 5,000 units of Product A per month, and up to 2,000 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?

• A)$16,000
• B)$18,000
• C)$20,000
• D)$22,000

---

Definitions:

Marketable Securities

Financial instruments that are easily convertible into cash, typically with high liquidity and short maturity periods, such as stocks and bonds.

Another Company

This term refers to an entity different from the one currently being discussed or involved.

Volatile Interest Rates

Interest rates that fluctuate frequently and unpredictably, often affecting borrowing and saving costs.