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What is the maximum contribution margin

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Question - The Cuthill Company manufactures two products: M1 and H1. Each product uses skilled labour and the total hours of skilled labour available for the following year is limited to 20363 hours. Data for each of the two products is as follows:

M1 H1

Contribution margin per unit $33.65 $53.58

Hours of skilled labour per unit 2.5 2.95

Maximum product demand (units) 6745 4447

Required - What is the maximum contribution margin that can be achieved next year?

a. $335779

b. $465240

c. $361712

d. $369847

Reference no: EM132725324

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