Manufacturing Conglomerate is able to increase its capacity. Manufacturing Conglomerate produces the flavored Cap Packs.

Flavors

Orange Lavender Mint

Selling price $$13\mathrm{.}99$ $$13\mathrm{.}99$ $$13\mathrm{.}99$

Variable manufacturing cost per unit $$8\mathrm{.}55$ $$10\mathrm{.}25$ $$8\mathrm{.}75$

Variable marketing cost per unit $$5\mathrm{.}25$ $$3\mathrm{.}65$ $$4\mathrm{.}15$

Contribution margin per unit $$0\mathrm{.}19$ $$0\mathrm{.}09$ $$1\mathrm{.}09$

Machine hours required to produce one unit $0\mathrm{.}150\mathrm{.}350\mathrm{.}85$

Question $13(1$ point$)$

Which flavored Cap Pack should CAPNOS devote the additional capacity, given the operational constraint?

Question $13$ options:

Orange

Lavender

Mint

Sell or Process Further

CAPNOS believes that adding a vanilla flavoring to the Orange Cap Pack $($called Orange Blend in the chart below will lead to an increase in sales.

Orange Orange Blend

Sales price per Unit $$13\mathrm{.}99$ $$15\mathrm{.}99$

Costs:

Direct material $5\mathrm{.}005\mathrm{.}00$

Direct labor $5\mathrm{.}006\mathrm{.}00$

Variable overhead $1\mathrm{.}001\mathrm{.}25$

Contribution margin per Unit $$2\mathrm{.}99$ $$3\mathrm{.}74$

Question $14(1$ point$)$

CAPNOS $($should$/$shouldn$\text{'}$t$)\_\_\_\_\_\_$ continue to process with additional vanilla flavoring, as the differential Revenue does$/$doesn$\text{'}$t exceed the differential Expenses by $$\_\_\_\_\_.$

Question $14$ options:

Blank # $1$

Blank # $2$