Widgeon CO. Manufactures three products: Bales, Tales, and Wales. The selling prices are, $55, $78, and $32, respectively. The variable cost of each product are, $20, $50, and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process, takes take 7 hours, and Wales take 1 hour. Which product has the highest contribution margin per machine hour?
Widgeon CO. Manufactures three products: Bales, Tales, and Wales. The selling prices are, $55, $78, and $32, respectively. The variable cost of each product are, $20, $50, and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process, takes take 7 hours, and Wales take 1 hour. Which product has the highest contribution margin per machine hour?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Widgeon CO. Manufactures three products: Bales, Tales, and Wales. The selling prices are, $55, $78, and $32, respectively. The variable cost of each product are, $20, $50, and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process, takes take 7 hours, and Wales take 1 hour.
Which product has the highest contribution margin per machine hour?
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