The following are production and cost data for two products, A and B, produced in batches of 100 units. $\begin{array}{lrr}&\text { Product A }&\text { Product B }\
\text { Contribution margin per batch } & \$ 450 & \$ 340 \
\text { Machine set-ups needed per batch } & 25 & 20
\end{array}$ The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product.What is the incremental profit from producing Product A instead of Product B for the year?
A)$216,000
B)$204,000
C)$12,000
D)$54,000

Question

Quizplus · Accepted Answer

The Answer of The following are production and cost data for two products, A and B, produced in batches of 100 units. $\begin{array}{lrr}&\text { Product A }&\text { Product B }\
\text { Contribution margin per batch } & \$ 450 & \$ 340 \
\text { Machine set-ups needed per batch } & 25 & 20
\end{array}$ The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product.What is the incremental profit from producing Product A instead of Product B for the year?
A)$216,000
B)$204,000
C)$12,000
D)$54,000

The Following Are Production and Cost Data for Two Products