Question - The following are production and cost data for two products, X and Y.
Product X Product Y
Contribution margin per unit $450 $280
Machine set-ups needed per unit 25 14
The company can only perform 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