A Company Sells Two Products with Information as Follows Products Are Made by Machine

question 90

Multiple Choice

A company sells two products with information as follows:
$$\begin{array} { | l | r | r | } \hline & \mathrm { A } & \mathbf { B } \\\hline \text { Price per unit } & \$ 12.00 & \$ 28.00 \\\hline \text { Variable cost per unit } & \$ 10.00 & \$ 10.00 \\\hline\end{array}$$
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 4000 machine hours available per month.The company can sell up to 7000 units of Product A per month and up to 3000 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) $14,000
• B) $54,000
• C) $126,000
• D) $68,000

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Definitions:

Minute Ventilation

Product of tidal volume times the respiratory rate.

Residual Volume

The volume of air remaining in the lungs after a forceful expiration, ensuring that gas exchange can continue at all times.

Inspiratory Reserve

The additional amount of air that can be inhaled after a normal inhalation, increasing lung volume.

Expiratory Reserve

The additional amount of air that can be forcefully exhaled after the completion of a normal expiration.