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Phoenix Plant Company makes two candy bar products, Chewies and Chompo bars. Contribution margin data follow: Sales price/unit Less: Variable cost/unit Direct material Direct Labor
Phoenix Plant Company makes two candy bar products, Chewies and Chompo bars. Contribution margin data follow: Sales price/unit Less: Variable cost/unit Direct material Direct Labor Variable overhead Variable selling and administrative Total variable cost/unit Contribution margin/ unit Chewies Chompo $60 $70 25 30 1 4 13 16 15 10 54 60 6 10 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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