Martorell Products Inc

question 70

Multiple Choice

Martorell Products Inc. makes two products—C39X and H08L. Product C39X's selling price is $54.00 and its unit variable cost is $43.20. Product H08L's selling price is $496.00 and its unit variable cost is $446.40. The monthly demand is 2,500 units for product C39X and 510 units for H08L. The constrained resource is a particular machine that is available for 10,300 minutes each month. Each unit of product C39X requires 3 minutes on this machine and each unit of product H08L requires 16 minutes on this machine.
-What is the maximum contribution margin the company can earn per month?

• A)$35,680
• B)$34,396
• C)$33,000
• D)$52,296

---

Definitions:

Maliciousness

The quality of having the intent to do harm, cause distress, or engage in wrongful actions deliberately.

Negligence Per Se

A legal doctrine that considers an act to be inherently negligent because it violates a statute or regulation.

Product Liability Cases

Legal disputes where manufacturers, distributors, suppliers, or retailers are held responsible for damages caused by defects in their products.

Individual Product

A specific good or service offered for sale that is distinct in features or use from other products in the market.