Buchnell Manufacturing has 80,600 labor hours available for producing M and N. Consider the following...
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Accounting
Buchnell Manufacturing has 80,600 labor hours available for producing M and N. Consider the following information:
Product M
Product N
Required labor time per unit (hours)
5
6
Maximum demand (units)
6,200
8,600
Contribution margin per unit
$ 12.00
$ 12.60
Contribution margin per labor hour
$2.40
$ 2.10
If Buchnell follows proper managerial accounting practices in terms of setting a production schedule, how much contribution margin would the company expect to generate?
$72,960.
$177,960.
$178,560.
$182,760.
None of these.
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