Consider the Following Production and Cost Data for Two Products

question 33

Multiple Choice

Consider the following production and cost data for two products, X and Y: $\begin{array}{lrr}& \text {Product X } &\text { Product Y} &\\ \text { Contribution margin per unit } &£24&£18\\ \text { Machine-hours needed per unit} &3 \text { hours } 2& \text { hours }\\\\\end{array}$

The company has 15,000 machine hours 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)£120,000
• B)£125,000
• C)£135,000
• D)£150,000

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Definitions:

Greenstick Fracture

A type of bone fracture that is incomplete and most commonly occurs in children.

Dislocation

A medical condition in which there is an abnormal displacement of the articulation between two bones, often causing pain and dysfunction.

Incision

A cut made in the body by a surgeon for the purpose of performing surgery.

Laceration

A deep cut or tear in skin or flesh.