The Garrison Company manufactures two products: Oxy Cleaner and Sonic Cleaner. The costs and revenues are as follows:
Oxy Cleaner Sonic Cleaner Sales Price $ 90 $ 50 Variable cost per unit 45 20 Total demand for Oxy is 11,300 units and for Sonic is 7,300 units. Machine time is a scarce resource. During the year, 63,000 machine hours are available. Oxy requires 5 machine hours per unit, while Sonic requires 3.0 machine hours per unit.
What is the maximum contribution margin Garrison can achieve during a year?
A $1,382,000.
B $1,197,000.
C $727,500.
D $588,900.