Problem
The management of Claypole Corporation has provided the following data concerning its two products--K56J and L72D:
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K56J
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L72D
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Selling price
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$414.00
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$105.00
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|
Unit variable cost
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$351.00
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$68.10
|
|
Monthly demand (units)
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870
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1,410
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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.)