Consider the Following Production and Cost Data for Two Products

question 35

Multiple Choice

Consider the following production and cost data for two products, Q and P: $\begin{array}{lrr}&\text { Product O}&\text {product P}\\ \text { Contribution margin per unit } &£40&£36\\ \text { Machine minutes needed per unit} &8 \text { minutes } &6 \text { minutes } \\ \text { } &\\ \text { } &\\ \text { } &\\\end{array}$

A total of 24,000 machine minutes are available each period and there is virtually unlimited demand for each product. What is the largest possible total contribution margin that can be realised each period

• A)£120,000
• B)£144,000
• C)£456,000
• D)£132,000

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