The Management of Radke Corporation Has Provided the Following Data

question 37

Multiple Choice

The management of Radke Corporation has provided the following data concerning its two products-F74 and E50: The constrained resource is a particular machine that is available for 10,200 minutes each month. Each unit of product F74 requires 7 minutes on this machine. Each unit of product E50 requires 16 minutes on this machine.
-What is the maximum contribution margin the company can earn per month?

• A) $70,472
• B) $52,088
• C) $54,272
• D) $49,592

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Definitions:

Multinomial Proportions

Relative frequencies of outcomes from a multinomial distribution, often used to describe the proportion of outcomes in categorical data.

One-tail Test

A statistical test where the alternative hypothesis specifies a direction of the tested effect.

Z-test

A statistical method employed to ascertain if there's a difference between the means of two populations when the variances are established and the sample size is significant.

Chi-square Goodness-of-fit

A statistical test that measures how well observed sample data fit the expected distribution from a given hypothesis.