Question
Apple Farms produces three kinds of apples desserts. Dessert A has a contribution margin of $60, requires 2 hours to bake, and has maximum sales
Apple Farms produces three kinds of apples desserts. Dessert A has a contribution margin of $60, requires 2 hours to bake, and has maximum sales of 24,000 units. Dessert B has a contribution margin of $90, requires 4 hours to bake, and has maximum sales of 20,000 units. Dessert C has a contribution margin of $120, requires 6 hours to bake, and has maximum sales of 15,000 units. Apple Farms has a total of 200,000 baking hours available. Which of the following production plans is the best use of the available baking hours?
Select one:
a. A 15,000 units, B 20,000 units, C 15,000 units.
b. A 24,000 units, B 20,000 units, C 15,000 units.
c. A 24,000 units, B 15,500 units, C 15,000 units.
d. None of the other choices.
e. A 24,000 units, B 20,000 units, C 12,000 units.
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