Nevada Company manufactures and sells office chairs in two models: Executive and Deluxe. Product information is provided below. Deluxe Executive Unit selling price $150 $500 Unit variable costs 90 250 Unit contribution margin $ 60 $250 Machine hours required per unit 2 10 Nevada has 10,000 machine hours available each month for producing these two products. The demand for both products is such that Nevada can sell as many units of either product as it can produce. What is the maximum amount of contribution margin that the company can obtain from the available machine hours next month?
a. $250,000.
b. $600,000.
c. $300,000.
d. $2,500,000.
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