Reference no: EM132825135

Buchnell Manufacturing has 35,200 labor hours available for producing M and N. Consider the following information:

                                                                    Product M                  Product N

Required labor time per unit (hours)                  2                    3

Maximum demand (units)                           6,000                8,400

Contribution margin per unit                         $ 7.00               $ 7.50

Contribution margin per labor hour                 $3.50                   $ 2.50

Problem 1: If Buchnell follows proper managerial accounting practices in terms of setting a production schedule, how much contribution margin would the company expect to generate?

Group of answer choices

Option 1: $40,800.

Option 2: $98,000.

Option 3: $100,000.

Option 4: $105,000.

Option 5: None of these.