Biology Forums - Study Force

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

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Chairs

Tables

Selling price per item	$62.00	$76.00
Variable cost per item	51.00	64.00
Contribution margin per item	$11.00	$12.00
Machine hours per item	1.6	1.6

Range Rider has 900 machine hours available each month. The demand for chairs is 560 units per month and the demand for tables is 340 units per month. If Range Rider 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?

▸ $10,240

▸ $6,182

▸ $6,522

▸ $6,744

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