Question: Bothell Inc. makes two products A and B that use compound W, the current constrained resource: Product A Product B Contribution margin per unit $

Bothell Inc. makes two products A and B that use compound W, the current constrained resource:

	Product A		Product B
Contribution margin per unit	$	60		$	56
Pounds of compound W per unit		5			4

A total of 30,000 pounds of compound W are available each period and the demand for each product is infinitely large. What is the maximum contribution margin that Bothell can generate each period?

Multiple Choice

$390,000
$780,000
$420,000
$360,000

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