Greg’s Breads can produce and sell only one of the following two products: Oven Contribution Hours Required Contribution Margin Per Unit Muffins 0.2 hour $3 Coffee Cakes 0.3 hour $4 The company has oven capacity of 1,500 hours. How much will contribution margin be if it produces only the most profitable product? Group of answer choices $30,000 $15,000 $22,500 $20,000
Greg’s Breads can produce and sell only one of the following two products: Oven Contribution Hours Required Contribution Margin Per Unit Muffins 0.2 hour $3 Coffee Cakes 0.3 hour $4 The company has oven capacity of 1,500 hours. How much will contribution margin be if it produces only the most profitable product? Group of answer choices $30,000 $15,000 $22,500 $20,000
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8E
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Question
Greg’s Breads can produce and sell only one of the following two products:
Oven Contribution
Hours Required Contribution Margin Per Unit
Muffins 0.2 hour $3
Coffee Cakes 0.3 hour $4
The company has oven capacity of 1,500 hours. How much will contribution margin be if it produces only the most profitable product?
Group of answer choices
$30,000
$15,000
$22,500
$20,000
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