Total demand for Oxy is 10,000 units and for Sonic is 6,000 units. Machine time is a scarce resource. During the year, 50,000 machine hours are available. Oxy requires 4 machine hours per unit, while Sonic requires 2.5 machine hours per unit. What is the maximum contribution margin Garrison can achieve during a year

$444,250

Explanation:

Calculation to determine the maximum contribution margin Garrison can achieve during a year

First step is to calculate the Contribution margin per hour

Oxysonic

Sales$75$44

Less: variable cost$40$21

=Contribution margin per unit3523

÷Machine hour per unit42.5

=Contribution margin per hour$8.75$9.2

Ranking21

Second step is to calculate the Hour required for sonic

Hour required for sonic = 6,000*2.5

Hour required for sonic= 15,000 hours

Third step is to calculate the Hour available for oxy

Hour available for oxy = 50,000-15,000

Hour available for oxy = 35,000 hours

Fourth step is to calculate the Production of Oxy

Production of Oxy = 35,000/4

Production of Oxy= 8,750 units

Now let calculate the Maximum contribution margin

Maximum contribution margin = 8,750*35+ 6000*23

Maximum contribution margin =306,250+,138,000

Maximum contribution margin = $444,250

Therefore the maximum contribution margin Garrison can achieve during a year is $444,250

what

explanation:

answer; societal marketing;