Question
Bramble Corp. can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margin of
Bramble Corp. can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margin of $ 58 and takes two machine hours to make and Fancy has a unit contribution margin of $ 57 and takes three machine hours to make. There are 2400 machine hours available to manufacture a product. What should Bramble do?
The same total profits exist regardless of which product is made.
Make Fancy which creates $ 30 more profit per unit than Plain does.
Make Plain which creates $ 10 more profit per machine hour than Fancy does.
Make Plain because more units can be made and sold than Fancy.
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