Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, $78, and $32, respectively. The variable costs for 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; Tales, 7 hours; and Wales 1 hour. 2. Assuming that Widgeon Co. can sell all of the products it can make, what is the maximum contribution margin it can earn per month? a. $49,000 b. $70,000 c. $56,000 $34,000
Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, $78, and $32, respectively. The variable costs for 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; Tales, 7 hours; and Wales 1 hour. 2. Assuming that Widgeon Co. can sell all of the products it can make, what is the maximum contribution margin it can earn per month? a. $49,000 b. $70,000 c. $56,000 $34,000
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 12EB: Power Corp. makes 2 products: blades for table saws and blades for handsaws. Each product passes...
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