Question: Bison Co. makes three products, basic, classic, and deluxe. The maximum Bison can sell is 85,000 units of basic, 436,000 units of classic, and
Bison Co. makes three products, basic, classic, and deluxe. The maximum Bison can sell is 85,000 units of basic, 436,000 units of classic, and 140,000 units of deluxe. Bison has limited production capacity of 98,000 hours. It can produce 10 units of basic, 8 units of classic, and 4 units of deluxe per hour. Contribution margin per unit is $15 for the basic, $25 for the classic, and $55 for the deluxe. What is the total contribution margin if Bison Co. chooses the most profitable sales mix? Multiple Choice $9,317,000 $10,028,000 $16,132,000 $19.875,000 $13,298,000
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