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Calculate the maximum amount of contribution margin

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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.

Reference no: EM131766966

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