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Crane Company can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margi and
Crane Company can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margi and takes two machine hours to make and Fancy has a unit contribution margin of $90 and takes three machine hours to ma are 2000 machine hours available to manufacture a product. What should Crane do? Make Fancy which creates $15 more profit per unit than Plain doesi Make Plain which creates $5 more profit per machine hour than Fancy does. The same total profits exist regardless of which product is made. Make Plain because more units can be made and sold than Fancy
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