A company can produce and sell only one of the following two products:
| Machine Hours Required |
Contribution Margin Per Unit |
||
| Product 1 | 3 | $60 | |
| Product 2 | 2 | $50 |
If the company has machine capacity of 2,000 hours, what is the total contribution margin of the product it should produce to maximize net income?
|
$32,000 |
|
$40,000 |
|
$48,000 |
|
$50,000 |