Zantaq Inc. has 5,400 machine hours available each month. The following information on the company's three products is available:
$$\begin{array} { l c r r }
& & & \text { Side } \
& \text { Bookcases } & \text { Chairs } & \text { Tables }\
\text { Contribution margin per unit } &\$ 15.00 & \$ 18.00 & \$ 7.50 \
\text { Machine hours per unit } & 3&2&1
\end{array}$$

The market demand is limited to 2,000 units of each of the three products.
- What is the maximum possible contribution margin that Zantaq could make in any month?
A) $81,000.
B) $46,500.
C) $43,000.
D) $51,000.

Question

Zantaq Inc. has 5,400 machine hours available each month. The following information on the company's three products is available:
$$\begin{array} { l c r r } 
& & & \text { Side } \
& \text { Bookcases } & \text { Chairs } & \text { Tables }\
\text { Contribution margin per unit } &\$ 15.00 & \$ 18.00 & \$ 7.50 \
\text { Machine hours per unit } & 3&2&1
\end{array}$$

The market demand is limited to 2,000 units of each of the three products.
- What is the maximum possible contribution margin that Zantaq could make in any month?
A) $81,000.
B) $46,500.
C) $43,000.
D) $51,000.

Quizplus · Accepted Answer

The Answer of Zantaq Inc. has 5,400 machine hours available each month. The following information on the company's three products is available:
$$\begin{array} { l c r r } 
& & & \text { Side } \
& \text { Bookcases } & \text { Chairs } & \text { Tables }\
\text { Contribution margin per unit } &\$ 15.00 & \$ 18.00 & \$ 7.50 \
\text { Machine hours per unit } & 3&2&1
\end{array}$$

The market demand is limited to 2,000 units of each of the three products.
- What is the maximum possible contribution margin that Zantaq could make in any month?
A) $81,000.
B) $46,500.
C) $43,000.
D) $51,000.

Zantaq Inc The Market Demand Is Limited to 2,000 Units of Each