Multiple Choice
Bricktan Inc.makes three products,basic,classic,and deluxe.The maximum Bricktan can sell is 75,000 units of basic,420,000 units of classic,and 120,000 units of deluxe.Bricktan has limited production capacity of 90,000 hours.It can produce 10 units of basic,8 units of classic,and 4 units of deluxe per hour.Contribution margin per unit is $15 for the basic,$25 for the classic,and $55 for the deluxe.What is the total contribution margin if Bricktan chooses the most profitable sales mix?
A) $8,000,000.
B) $9,700,000.
C) $15,500,000.
D) $18,225,000.
E) $12,800,000.
Correct Answer:
Verified
Correct Answer:
Verified
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