Buchnell Manufacturing Has 31,000 Labor Hours Available for Producing M

question 26

Multiple Choice

Buchnell Manufacturing has 31,000 labor hours available for producing M and N. Consider the following information: $\begin{array}{lcc}&\text { Product M }&\text { Product } \mathrm{N}\\\text { Required labor time per unit (hours) } & 2 & 3 \\\text { Maximum demand (units) } & 6,500 & 8,000 \\\text { Contribution margin per unit } & \$ 5.00 & \$ 5.70 \\\text { Contribution margin per labor hour } & \$ 2.50 & \$ 1.90\end{array}$ If Buchnell follows proper managerial accounting practices in terms of setting a production schedule, how much contribution margin would the company expect to generate?

• A) $31,450.
• B) $63,100.
• C) $66,700.
• D) $78,100.
• E) None of the other answers are correct.

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Definitions:

Biological Need

Basic physical requirements for human survival, such as food, water, air, shelter, and sleep, that are essential for maintaining health and well-being.

Operant Conditioning

The technique of modifying the degree of a behavior through the provision of rewards or the imposition of punishments.

Voluntary Behavior

Actions that are under conscious control, as opposed to automatic or reflexive behaviors.

Thorndike's Law

A principle of learning that emphasizes the effect of rewards and punishments on behavior, suggesting that actions followed by positive outcomes are reinforced and more likely to be repeated.