Zantaq Inc Has 5,400 Machine Hours Available Each Month The Market Demand Is Limited to 2,000 Units of Each

question 103

Multiple Choice

Zantaq Inc has 5,400 machine hours available each month.The following information on the company's three products is available:
$$\begin{array} { | l | r | r | r | } \hline & \text { Bookcases } & \text { Chairs } & \begin{array} { r } \text { Side } \\\text { Tables }\end{array} \\\hline \begin{array} { l } \text { Contribution margin per } \\\text { unit }\end{array} & \$ 15.00 & \$ 18.00 & \$ 7.50 \\\hline \text { Machine hours per unit } & 3 & 2 & 1 \\\hline\end{array}$$
The market demand is limited to 2,000 units of each of the three products.What is the maximum possible contribution margin that Zantaq could make in any month?

• A) $81,000.
• B) $46,500.
• C) $43,000.
• D) $51,000.

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