Solution-What will the total contribution margin be

What will the total contribution margin be

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Reference no: EM133060180

Question - Pharoah Industries manufactures chairs and tables that are in high demand by local office furniture stores. Following is information for each of these products:

	Chairs	Tables
Selling price per item	$78.00	$95.00
Variable cost per item	61.00	77.00
Contribution margin per item	$17.00	$18.00
Machine hours per item	1.60	1.60

Pharoah has 1024 machine hours available each month. The demand for chairs is 610 units per month and the demand for tables is 390 units per month. If Pharoah allocates its production capacity between the chairs and tables so that it maximizes the company's contribution margin, what will the total contribution margin be?

a. $11270

b. $11520

c. $17390

d. $10880

Reference no: EM133060180

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What will the total contribution margin be

Reference no: EM133060180

Reference no: EM133060180

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