Range Rider Industries Manufactures Chairs and Tables That Are in High

question 156

Multiple Choice

Range Rider Industries manufactures chairs and tables that are in high demand by local office furniture stores.Following is information for each of these products:

Range Rider has 900 machine hours available each month. The demand for chairs is 560 units per month and the demand for tables is 340 units per month. If Range Rider allocates its production capacity between the chairs and tables so that it maximizes the company’s contribution margin, what will the contribution margin be?

• A) $6,744
• B) $6,522
• C) $6,182
• D) $10,240

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Definitions:

Taxol

A complex diterpene alkaloid used as a chemotherapeutic agent, derived from the bark of the Pacific yew tree, Taxus brevifolia.

Ketones

Organic molecules defined by the presence of a carbonyl group (C=O) attached to two carbon atoms.

Aldehydes

Organic compounds characterized by the presence of a carbonyl group connected to at least one hydrogen atom, with the general formula R-CHO.

Stereochemical Designators

Symbols used to describe the spatial arrangement of atoms or functional groups in a molecule.