Edison Company Produces Two Types of Piano Legs, Plain and Fancy

question 26

Multiple Choice

Edison Company produces two types of piano legs, plain and fancy, which have unit contribution margins of $8 and $12, respectively. Each piano leg must spend time on a special machine. The firm owns four machines that together provide 10,000 hours of machine time per year. The plain leg requires 0.25 hours of machine time, and the fancy leg requires 0.5 hours of machine time.
-Refer to the Figure.How many of each type of leg must be sold to optimize total contribution margin?

• A)40,000 plain legs; 0 fancy legs
• B)0 plain legs; 20,000 fancy legs
• C)10,000 plain legs; 0 fancy legs
• D)20,000 plain legs; 10,000 fancy legs