What is the maximum contribution margin the company can earn

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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.)

Reference no: EM131785531

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