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Calculate the maximum amount of contribution margin

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XYZ Company produces two products, A and B. For the coming period, 100,000 machine hours and285,000 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 XYZ Company can earn in the coming period.
Do not use decimals in your answer.

Reference no: EM131767382

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