Effie Corporation Produces Two Products,P and Q

question 9

Multiple Choice

Effie Corporation produces two products,P and Q.P sells for $8.00 per unit; Q sells for $6.00 per unit.Variable costs for P and Q are $2.00 and $5.00,respectively.There are 7300 direct labor hours per month available for producing the two products.Product P requires 2.00 direct labor hours per unit,and product Q requires 4.00 direct labor hours per unit.The company can sell as many of either product as it can produce.What is the maximum monthly contribution margin that Effie can generate under the circumstances? (Round your answer to nearest whole dollar.)

• A)$21,900
• B)$3650
• C)$43,800
• D)$7300

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Trial Court

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Jury

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