Bricktan Inc

question 149

Multiple Choice

Bricktan Inc.makes three products,basic,classic,and deluxe.The maximum Bricktan can sell is 75,000 units of basic,420,000 units of classic,and 120,000 units of deluxe.Bricktan has limited production capacity of 90,000 hours.It can produce 10 units of basic,8 units of classic,and 4 units of deluxe per hour.Contribution margin per unit is $15 for the basic,$25 for the classic,and $55 for the deluxe.What is the total contribution margin if Bricktan chooses the most profitable sales mix?

• A)$8,000,000.
• B)$9,700,000.
• C)$15,500,000.
• D)$18,225,000.
• E)$12,800,000.

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Definitions:

Order Processing

The series of actions or steps taken by a business to fulfill and ship orders to customers.

Inventory Costs

Expenses associated with holding and managing goods or materials that a company plans to sell, including storage, insurance, and depreciation.

Transportation Costs

Expenses incurred in the process of moving goods from production locations to consumers, including costs associated with shipping, freight, and logistics.

Minimize

The process of reducing something to its smallest possible level or amount.