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lgeon Co. manufactures three products: Bales: Tales; and Wales. The selling prices are: $55; $78; and S32, respectively. The variable costs for each product are:

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lgeon Co. manufactures three products: Bales: Tales; and Wales. The selling prices are: $55; $78; and S32, respectively. The variable costs for each product are: $20; $50; and $15, respectively. Each product rough the same processing in a machine that is limited to 2,000 hours per month. Bales take hours to process, Tales take 7 hours, and Wales take I hour What is the contribution margin per machine hour for Bales? a. $28 b. $35 c. $7 d. $5 14. 15. Which product has the highest contribution margin per machine hour? a. Bales and Tales have the same b. Bales c. Wales d. Tales Assume that Widgeon produced enough product with the highest contribution margin per unit to use 1,000 hours of machine time. Product demand does not warrant any more production of that product. What is the maximum additional contribution margin that can be realized by utilizing the remaining 1,000 hours on the product with the second highest contribution margin per hour? a. $7,000 b. $28,000 c. $4,000 d. $35,000 What is the contribution per machine hour for Wales? a. $35 b. $17 c. $28 d. $7 16. 17. Assuming that Widgeon Co. can sell all of the products they can make, what is the maximum contribution margin they can earn per month? a. $34,000 b. $56,000 c. $70,000 d. $49,000 18

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