What is the maximum contribution margin for the year

Reference no: EM13288323

The following is the production and cost data for two products. A and B

Product A:
Contribution margin per unit: $450
Machine setups needed/unit: 25

Product B:
Contribution margin per unit: $280
Machine set-ups needed/unit: 14

The company can do 14,000 set-ups each period, yet there is unlimited demand for each product. What is the maximum contribution margin for the year?

A) $450,000
B) $252,000
C) $156,800
D) $280,000

Reference no: EM13288323

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