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Phoenix Plant Company makes two candy bar products, Chewies and Chompo bars. Contribution margin data follow: Chewies $70 Chompo $50 Sales price / unit Less:
Phoenix Plant Company makes two candy bar products, Chewies and Chompo bars. Contribution margin data follow: Chewies $70 Chompo $50 Sales price / unit Less: Variable cost/ unit Direct material Direct Labor Variable overhead Variable selling and administrative Total variable cost / unit Contribution margin/ unit 20 5 10 15 50 20 15 1 11 16 43 7 Phoenix Plant company's production process uses highly skilled labor, which is in short supply. The same employees work on both products and earn the same wage rate. Required: Which of Phoenix Company's products is more profitable? Explain (Show your calculations)
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