JK Company can sell all of the plush and supreme products it can produce, but it has limited production capacity. It can produce 4 plush units per hour or 2 supreme units per hour, and it has 2,000 production hours available. Contribution margin per unit is $214 for the plush product and $300 for the supreme product. What is the total contribution margin if JK chooses the most profitable sales mix?
A. $2,400,000.
B. $1,648,000.
C. $1,424,000.
D. $1,712,000.
E. $824,000.
Answer: D
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