How much total contribution margin


Overstock has 31,000 labor hours available for producing A and B. Consider the following information:'


Product A

Product B

Hours of labor required per unit

2

3

Maximum demand in units

6,500

8,000

Contribution Margin per unit

$5.00

$5.70

If Overstock follows proper managerial accounting practices in terms of setting a production schedule, how much total contribution margin would the company expect to generate?

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Accounting Basics: How much total contribution margin
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