Sunland Company can produce and sell only one of the following two products:   Oven Hours Required Contribution Margin Per Unit Muffins 0.2 $7 Coffee Cakes 0.3 $8   The company has oven capacity of 2250 hours. How much will contribution margin be if it produces only the most profitable product?

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Chapter7: Cost-volume-profit Analysis
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Sunland Company can produce and sell only one of the following two products:

 

Oven

Hours Required

Contribution

Margin Per Unit

Muffins

0.2

$7

Coffee Cakes

0.3

$8

 

The company has oven capacity of 2250 hours. How much will contribution margin be if it produces only the most profitable product?

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