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8.4.04 The Good Health Baking Company produces a salt-free whole grain bread and a carob-chip cookie. The demand for these products is exceeding Good Health's

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The Good Health Baking Company produces a salt-free whole grain bread and a carob-chip cookie. The demand for these products is exceeding Good Health's production capacity. The company has only 84,000 direct labor hours available. A case of bread one direct labor hour, while a case of-cookies requires half a direct labor hour. The company estimates that it can sell 100,000 cases of bread and 50,000 cases of cookies in the next year. The following financial information is available. (a) Calculate the contribution margin per direct labor hour. (b) How should Good Health allocate its production capacity between bread and cookies? Bread 42000 DLH Cookies 42000 DLH

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