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6 Sweet Taste has the capacity to produce either 52,000 corncob pipes or 30,000 cornhusk dolls per year. The pipes cost $6.75 each to produce
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Sweet Taste has the capacity to produce either 52,000 corncob pipes or 30,000 cornhusk dolls per year. The pipes cost $6.75 each to produce and sell for $15.00 each. The dolls sell for $17.50 each and cost $7.75 to produce. Required Calculate the contribution margin per unit and the total contribution margin for Pipes and Dolls. Assuming that Sweet Taste can sell all it produces of either product, should I produce the corncob pipes or the cornhusk dolls? (Round "Contribution margin per unit" answers to 2 decimal places.) Pipes Dolls Contribution margin per unit Total contribution margin Should it produce the corncob pipes or the cornhusk dolls Step by Step Solution
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