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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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