The Management of Claypole Corporation Has Provided the Following Data

question 22

Multiple Choice

The management of Claypole Corporation has provided the following data concerning its two products-H59 and C92: The constrained resource is a particular machine that is available for 10, 100 minutes each month.Each unit of product H59 requires 5 minutes on this machine.Each unit of product C92 requires 3 minutes on this machine. What is the maximum contribution margin the company can earn per month?

• A)$19, 788
• B)$18, 770
• C)$28, 950
• D)$19, 249

---

Definitions:

Agency Agreement

A contract creating a fiduciary relationship whereby the first party consents that the actions of a second party bind them in relations with a third party.

Principal

The main party to a transaction or contract who has authorized an agent to act on their behalf.

Apparent Agency

A legal concept where a person appears to be, or is mistakenly believed to be, authorized to act as an agent for another party.

Agency by Estoppel

A principle by which a person or entity is prevented from denying the authority of another who has been allowed to act as their agent, despite not officially having been granted the role.