Sally's Sod Inc. provides lawn maintenance and has two different packages: Standard and Deluxe. Selected data related to each package is as follows:
Standard Deluxe
Contribution margin per package $40 $120
Direct labor hours per package 2 3
For the upcoming year, the company has a maximum of 3,600 direct labor hours available. Sally's management believes that there will be demand for both the standard and deluxe lawn maintenance packages and that each type of package is limited to 800 lawn services per year. If the company's goal is to maximize profits, what is the contribution margin the company could have in the upcoming year?
a. $128,000
b. $120,000
c. $ 96,000
d. $ 72,000
e. $144,000
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