Question
Decorative Dish Company manufactures two plates: a floral pattern which sells for $22 per plate and has variable expenses of $17.25 and a multi-colored pattern
Decorative Dish Company manufactures two plates: a floral pattern which sells for $22 per plate and has variable expenses of $17.25 and a multi-colored pattern which sells for $14 and has a variable expenses of $7.25 per plate. The company has one plate making machine and can make 7 plates per hour of the floral pattern and 5 plates per hour of the multi-colored pattern. If the company determines they have 2000 machine hours available for the year and they operate at full capacity how much will the Floral plate contribute to the total contribution margin if they decide to only make that plate?
$308,000 |
$66,500 |
$134,000 |
$67,500 |
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