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Sunland Manufacturing produces thermal tents and sleeping bags. The company's products are in high demand due to the quality and durability of the products. Sunland estimates it could sell 600 tents per month and 600 sleeping bags per month. Following is information for each of these products: Selling price per item Variable cost per item Contribution margin per item Machine hours per item Tent Sleeping Bag $76.00 65.00 $11.00 1.00 $51.00 39.00 $12.00 1.00 Sunland has 880 machine hours available each month. In order to maximize the company's total contribution margin, how should Mallory allocate its production capacity between the tents and sleeping bags? 880 sleeping bags and 0 tents 600 sleeping bags and 280 tents 880 tents and 0 sleeping bags. 600 tents and 280 sleeping bags

Sunland Manufacturing produces thermal tents and sleeping bags. The company's products are in high demand due to the quality and durability of the products. Sunland estimates it could sell 600 tents per month and 600 sleeping bags per month. Following is information for each of these products: Selling price per item Variable cost per item Contribution margin per item Machine hours per item Tent Sleeping Bag $76.00 65.00 $11.00 1.00 $51.00 39.00 $12.00 1.00 Sunland has 880 machine hours available each month. In order to maximize the company's total contribution margin, how should Mallory allocate its production capacity between the tents and sleeping bags? 880 sleeping bags and 0 tents 600 sleeping bags and 280 tents 880 tents and 0 sleeping bags. 600 tents and 280 sleeping bags

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Sunland Manufacturing produces thermal tents and sleeping bags. The company's products are in high demand due to the quality and durability of the products. Sunland estimates it could sell 600 tents per month and 600 sleeping bags per month. Following is information for each of these products: Selling price per item Variable cost per item Contribution margin per item Machine hours per item Tent Sleeping Bag $76.00 65.00 $11.00 1.00 $51.00 39.00 $12.00 1.00 Sunland has 880 machine hours available each month. In order to maximize the company's total contribution margin, how should Mallory allocate its production capacity between the tents and sleeping bags? 880 sleeping bags and 0 tents 600 sleeping bags and 280 tents 880 tents and 0 sleeping bags. 600 tents and 280 sleeping bags
Transcribed Image Text:Sunland Manufacturing produces thermal tents and sleeping bags. The company's products are in high demand due to the quality and durability of the products. Sunland estimates it could sell 600 tents per month and 600 sleeping bags per month. Following is information for each of these products: Selling price per item Variable cost per item Contribution margin per item Machine hours per item Tent Sleeping Bag $76.00 65.00 $11.00 1.00 $51.00 39.00 $12.00 1.00 Sunland has 880 machine hours available each month. In order to maximize the company's total contribution margin, how should Mallory allocate its production capacity between the tents and sleeping bags? 880 sleeping bags and 0 tents 600 sleeping bags and 280 tents 880 tents and 0 sleeping bags. 600 tents and 280 sleeping bags
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