Newton Manufacturing has 71,900 labor hours available for producing M and N. Consider the following...
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Accounting
Newton Manufacturing has 71,900 labor hours available for producing M and N. Consider the following information:
Product M
Product N
Required labor time per unit (hours)
4
5
Maximum demand (units)
7,100
9,100
Contribution margin per unit
$
6.00
$
6.50
Contribution margin per labor hour
$
1.50
$
1.30
If Newton follows proper managerial accounting practices in terms of setting a production schedule, how much contribution margin would the company expect to generate?
Multiple Choice
$41,600.
$98,750.
$99,150.
$101,750.
NONE OF THESE ANSWERS ARE CORRECT
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