Bricktan Inc. manufactures three products, basic, classic and deluxe. The maximum that Bricktan can sell is 80,000

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Bricktan Inc. manufactures three products, basic, classic and deluxe. The maximum that Bricktan can sell is 80,000 basic units, 428,000 classic units and 130,000 luxury units. Bricktan has a limited production capacity of 94,000 hours. It can produce 10 units of basic, 8 units of classic and 4 units of luxury per hour. The 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 Bricktan chooses the most profitable sales mix?

Related Book For answer-question

Management Accounting

ISBN: 978-0132570848

6th Canadian edition

Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu

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Posted Date: Mar 28, 2023 12:31 AM

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Bricktan Inc. manufactures three products, basic, classic and deluxe. The maximum that Bricktan can sell is 80,000

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Contribution margin per hour Basic 10 X 15 150 Classic 8 X 25 200 Deluxe 4 ... View the full answer

Management Accounting

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