Consider the Following Production and Cost Data for Two Products

question 23

Multiple Choice

Consider the following production and cost data for two products, L and C: The company can only perform 65, 000 machine set-ups each period due to limited skilled labor and there is unlimited demand for each product.What is the largest possible total contribution margin that can be realized each period?

• A)$845, 000
• B)$975, 000
• C)$910, 000
• D)$1, 820, 000

---

Definitions:

Predicted Value

The estimated value based on the predictor variable(s) in a regression analysis.

Regression Analysis

A statistical technique for modeling and analyzing the relationship between a dependent variable and one or more independent variables.

Sales

The process of exchanging goods or services for money; it involves quantifying the number of items sold and the revenue generated from such transactions.

Advertising

The act or practice of calling public attention to products, services, needs, etc., especially by paid announcements in newspapers, magazines, on radio, or on television.