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# Todd Corporation produces two products, P and Q. P sells for $7.50 per unit; Q sells for$6.50 per ...

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Todd Corporation produces two products, P and Q. P sells for $7.50 per unit; Q sells for$6.50 per unit. Variable costs for P and Q are $4.00 and$6.00, respectively. There are 7,300 direct labor hours per month available for producing the two products. Product P requires 5.00 direct labor hours per unit, and product Q requires 5.00 direct labor hours per unit. The company can sell as many of either product as it can produce. What is the maximum monthly contribution margin that Todd can generate under the circumstances? (Round your answer to nearest whole dollar.)
A) $25,550 B)$730
C) $3,650 D)$5,110
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## Horngren's Financial & Managerial Accounting, The Financial Chapters

Edition: 5th
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Mrgo-breedMrgo-breed
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6 years ago
 Makes perfect sense, thx
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6 years ago
 I'm liking this