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Assuming that Widgeon Co. can sell all of the products it can make, what is the maximum contribution margin it can earn per month? Widgeon
Assuming that Widgeon Co. can sell all of the products it can make, what is the maximum contribution margin it can earn per month?
Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, $78, and $32, respectively. The variable costs for each product are $20, $50, and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process; Tales, 7 hours; and Wales 1 hour. Assuming that Widgeon Co. can sell all of the products it can make, what is the maximum contribution margin it can earn per month? X ?a. $56,000 Ob. $34,00o C. $70,000 d. $49,000 Step by Step Solution
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