Consider the Following Production and Cost Data for Two Products

question 21

Multiple Choice

Consider the following production and cost data for two products, L and C: $\begin{array}{l}&\text { ProductL} &\text {Product C}\\\text { Contribution margin per unit} &£120&£112\\\text { Machine minutes needed per unit }&10 \text { minutes } &8 \text { minutes }\\\end{array}$
A total of 60,000 machine minutes are available each period and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period

• A)£720,000
• B)£840,000
• C)£780,000
• D)£1,560,000

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Definitions:

Vomeronasal Organ

An auxiliary olfactory sense organ that is found in many animals and is believed to be involved in detecting pheromones.

Pheromones

Chemical substances produced and released into the environment by animals, affecting the behavior or physiology of others of its species.

Prey Killing

The act exhibited by certain animals of hunting and killing other animals for food.

Receptor Neurons

Specialized nerve cells that respond to chemical and physical stimuli in the environment, sending signals to the brain.