Ambrose Company has only 25,000 hours of machine time each month to manufacture its two products. Product X has a contribution margin of $50, and Product Y has a contribution margin of $64. Product X requires 5 hours of machine time, and Product Y requires 8 hours of machine time. If Ambrose Company wants to dedicate 80 percent of its machine time to the product that will provide the most income, the company will have a total contribution margin of Select one: a. $210,000 b. $240,000 c. $250,000 d. $200,000

b. $240,000

Explanation:

The computation of the total contribution margin is shown below:

Contribution margin per machine hour for Product X is

= $50 ÷ 5 hours

= $10/hour

And,

Contribution margin per machine hour for Product Y is

= $64 ÷ 8 hours

= $8/hour

Now

= 80% × 25,000 hours

= 20,000 hours used for Product X

Now  

= 20,000 hours ÷ 5 hours per unit

= 4,000 units

And,

= 4,000 units × $50

= $200,000

And,  

= 5,000 hours ÷8 hours per unit

= 625 units × $64

= $40,000

so, Total CM is

= $200,000 + $40,000

= $240,000

d, conspicuous consumption is when you try to increase your wealth or social status (and in the case he's trying to create the perception of wealth considering he can't really afford it)

what are the options

explanation: