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Problem
The management of Claypole Corporation has provided the following data concerning its two products--K56J and L72D:
K56J
L72D
Selling price
$414.00
$105.00
Unit variable cost
$351.00
$68.10
Monthly demand (units)
870
1,410
The constrained resource is a particular machine that is available for 10,010 minutes each month. Each unit of product K56J requires 10 minutes on this machine and each unit of product L72D requires 3 minutes on this machine.
What is the maximum contribution margin the company can earn per month? (Round your intermediate calculations to 2 decimal places.)
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