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Gregs Breads can produce and sell only one of the following two products: Oven Contribution Hours Required Margin Per Unit Muffins 0.2 $3 Coffee Cakes

Gregs Breads can produce and sell only one of the following two products:

Oven Contribution

Hours Required Margin Per Unit

Muffins 0.2 $3

Coffee Cakes 0.3 $4

The company has oven capacity of 1,200 hours. How much will contribution margin be if it produces only the most profitable product?

a. $12,000

b. $16,000

c. $18,000

d. $24,000

The answer is $18,000. I would like to see the process.

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