Owen's Furniture Manufactures a Small Table and a Large Table

question 164

Multiple Choice

Owen's Furniture manufactures a small table and a large table.The small table sells for $1,100,has variable costs of $540 per table,and takes 10 direct labor hours to manufacture.The large table sells for $1,700,has variable costs of $980,and takes eight direct labor hours to manufacture.The company has a maximum of 5,000 direct labor hours per month when operating at full capacity.If there are no constraints on sales of either of the products and the company could choose any proportions of product mix that they wanted,the maximum contribution margin that the company could earn will be ________.

• A) $1,062,500
• B) $612,500
• C) $1,675,000
• D) $450,000

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Definitions:

Ambient Storage

Refers to the storage condition that does not require any controlled temperature or humidity conditions, allowing materials to be stored at room temperature.

Delayed Retrieval

The process where recalling information becomes more challenging after a period of time has passed since the initial learning or exposure.

Short-term Memory

A component of memory where small amounts of information can be stored for a short period.

Sensory Storage

A type of memory storage that temporarily retains impressions of sensory information after the original stimuli have ended.