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Calculate the maximum amount of contribution margin the

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Company produces two products, A and B. For the coming period, 100,000 machine hours and 285,000 direct labor hours are available. Information on the two products appears below:

Product A Product B

selling price per unit ........... $6.00 $5.00
variable costs per unit .......... $2.50 $2.30
machine hours per unit ........... 2.00 1.00
direct labor hours per unit ...... 3.00 4.00

Calculate the maximum amount of contribution margin the Company can earn in the coming period.

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Accounting Basics: Calculate the maximum amount of contribution margin the

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