Todd Company Produces Two Products,P and Q

question 110

Multiple Choice

Todd Company produces two products,P and Q.P sells for $7.50 per unit; Q sells for $6.50 per unit.Variable costs for P and Q are respectively,$4.00 and $6.00.There are 6300 direct labour hours per month available for producing the two products.Product P requires 5.00 direct labour hours per unit and Product Q requires 5.00 direct labour hours per unit.The company can sell as many of either product as it can produce.What is the maximum monthly contribution margin that Todd can generate under the circumstances? Round to nearest whole dollar.

• A) $4410
• B) $22,050
• C) $3150
• D) $630

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Definitions:

Slow-To-Warm-Up

A temperament where individuals are hesitant in new situations but become more comfortable over time.

Temperament

An individual's innate disposition or personality, often observable from early childhood and influencing behavior and emotional reactions.

Uncrowded

Refers to a situation or environment that is not filled or packed with people, offering more space and less congestion.

Slow-To-Warm-Up

A temperament trait in some individuals characterized by a cautious, reflective approach to new experiences or strangers, often requiring more time to adjust.