Tonix Corporation Produces Two Products,P and Q

question 126

Multiple Choice

Tonix Corporation produces two products,P and Q.P sells for $5.00 per unit;Q sells for $6.50 per unit.Variable costs for P and Q are $3.00 and $4.50,respectively.There are 4,300 direct labor hours per month available for producing the two products.Product P requires 4.00 direct labor hours per unit,and product Q requires 5.00 direct labor hours per unit.The company can sell up to 900 units of each kind per month.What is the maximum monthly contribution margin that Todd can generate under the circumstances? (Round to nearest whole dollar. )

• A)$1,800
• C)$2,080
• D)$8,740

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Definitions:

Living Standards

The volume of capital, pleasantries, commodities, and indispensable resources available to a defined economic group or territorial area.

Market Economy

is an economic system in which supply and demand from consumers direct the production of goods and services.

Socially Desirable Outcome

An economic or social condition that benefits the majority of the community, considering factors like efficiency, equity, and the welfare of all participants.

Selfish Interests

Motivations based on personal gain or benefits rather than considering the welfare of others.