Assume That Widgeon Produced Enough Product with the Highest Contribution

question 52

Multiple Choice

Assume that Widgeon produced enough product with the highest contribution margin per unit to use 1,000 hours of machine time.Product demand does not warrant any more production of that product.What is the maximum additional contribution margin that can be realized by utilizing the remaining 1,000 hours on the product with the second highest contribution margin per hour?

• A)$35,000
• B)$1,400
• C)$4,000
• D)$28,000

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Definitions:

Audience

A group of people who gather to watch, listen to, or read something, or who are targeted to receive a specific message or product.

Performance

The act of carrying out a task or function; how well an individual or group executes a given task.

Majority Influence

The effect that the larger group has on individuals causing them to conform or change their opinions to align with the group's.

Normative Pressure

The influence of societal norms and expectations on an individual's behavior.