What is the maximum contribution margin for the year


The following are production and cost data for two products X and Y.

  • Product X Product Y
  • $450 $280 Contribution to margin per unit
  • 25 14 Machine set-ups needed per unit

The company can only perform 14,000 set-ups each period, yet there is unlimited demand for each product. What is the maximum contribution margin for the year?

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Accounting Basics: What is the maximum contribution margin for the year
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