The Garrison Company Manufactures Two Products: Oxy Cleaner and Sonic

question 129

Multiple Choice

The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner.The costs and revenues are as follows:
$$\begin{array} { | l | r | r | } \hline &ox y \text { Cleaner } & \text { Sonic Cleaner } \\\hline \text { Sales Price } & \$ 75 & \$ 44 \\\hline \text { Variable cost per unit } & 40 & 21 \\\hline\end{array}$$
Total demand for Oxy is 10,000 units and for Sonic is 6,000 units.Machine time is a scarce resource.During the year,50,000 machine hours are available.Oxy requires 4 machine hours per unit,while Sonic requires 2.5 machine hours per unit.What is the maximum contribution margin Garrison can achieve during a year?

• A) $444,250.
• B) $1,014,000.
• C) $488,000.
• D) $855,500.

---

Definitions:

Negative Performance Evaluation

An assessment that indicates an employee's work performance does not meet expected standards.

Delivering Negative News

The process of communicating unfavorable information or decisions in a sensitive and thoughtful manner.

Business Relationship

A connection between individuals or organizations that involves some level of mutual benefit, often in a commercial context.

Euphemisms

Mild or indirect words or expressions used to replace harsher, more direct, or unpleasant terms.