Overstock has 31,000 labor hours available for producing A and B. Consider the following information:'
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Product A
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Product B
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Hours of labor required per unit
|
2
|
3
|
Maximum demand in units
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6,500
|
8,000
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Contribution Margin per unit
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$5.00
|
$5.70
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If Overstock follows proper managerial accounting practices in terms of setting a production schedule, how much total contribution margin would the company expect to generate?