ACT310

Question Three 30 Points) Phoenix Plant Company makes two candy bar products, Chewies and Chompo bars. Contribution margin data follow: Chewles $70 Chompo $50 20 Sales price/ unit Less: Variable cost / unit Direct material Direct Labor Variable overhead Variable selling and administrative Total variable cost / unit Contribution margin/ unit 5 10 15 50 15 1 11 16 43 20 7 Phoenix Plant company's production process uses highly skilled labor, which is in short supply The same employees work on both products and earn the same wage rate. Required: Which of Phoenix Company's products is more profitable? Explain Show your cakulations)