Hadlee Corporation produces two products, P and Q. P sells for $7.00 per unit; Q sells for $6.00 per unit. Variable costs for P and Q are $3.00 and $5.00, respectively. There are 2300 direct labor hours per month available for producing the two products. Product P requires 2.00 direct labor hours per unit, and product Q requires 2.00 direct labor hours per unit. The company can sell up to 600 units of each kind per month. What is the maximum monthly contribution margin that Hadlee can generate under the circumstances? (Round to nearest whole dollar.)
A) $2400
B) $550
C) $2950
D) $12,050
C) $2950
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What will be an ideal response?
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