Reference no: EM131784429

Xcelerate Productions Inc. manufactures and sells three different products of different qualities. They are referred to as: Normal, High, and Superior. The accounting department provides the following information on these products:

Normal : Selling price per unit $30 Variable costs per unit $24.81 Contribution margin per unit $5.19 Machine hours required 0.02

High : Selling price per unit $42 Variable costs per unit $35 Contribution margin per unit $7.00 Machine hours required 0.04

Superior : Selling price per unit $52 Variable costs per unit $48 Contribution margin per unit $4.00 Machine hours required 0.08

If the limited resource can be increased by 780 hours, calculate the maximum increase in contribution margin. Assume that Xcelerate can sell all products manufactured.