Vaughn Manufacturing can produce and sell only one of the following two products: Oven Contribution Hours Margin Per Required Unit Muffins 0.2 $8 Coffee Cakes 0.5 $5 The company has oven capacity of 3500 hours. How much will contribution margin be if it produces only the most profitable product? O $87500. O $56000. O $35000. O $140000.
Vaughn Manufacturing can produce and sell only one of the following two products: Oven Contribution Hours Margin Per Required Unit Muffins 0.2 $8 Coffee Cakes 0.5 $5 The company has oven capacity of 3500 hours. How much will contribution margin be if it produces only the most profitable product? O $87500. O $56000. O $35000. O $140000.
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...
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![Vaughn Manufacturing can produce and sell only one of the following two products:
Oven
Contribution
Hours
Margin Per
Required
Unit
Muffins
0.2
$8
Coffee Cakes
0.5
$5
The company has oven capacity of 3500 hours. How much will contribution margin be if it produces only the most profitable product?
O $87500,
O $56000.
O $35000.
O $140000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F62ef4338-0c9e-4b24-8609-77122903df1f%2Fbd8ac4f1-18ae-4460-b620-f39e19b713da%2Fqopbzs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Vaughn Manufacturing can produce and sell only one of the following two products:
Oven
Contribution
Hours
Margin Per
Required
Unit
Muffins
0.2
$8
Coffee Cakes
0.5
$5
The company has oven capacity of 3500 hours. How much will contribution margin be if it produces only the most profitable product?
O $87500,
O $56000.
O $35000.
O $140000.
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