Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help solve questions 4 and 5 4. Butte Candy Company inadvertently produced 10 tons of product without the appropriate chocolate covering. The product could
please help solve questions 4 and 5
4. Butte Candy Company inadvertently produced 10 tons of product without the appropriate chocolate covering. The product could be sold as scrap for $200 per ton. Butte has productive capacity to rework and add chocolate at a cost of $50 per ton and can sell the reworked candy for $260 per ton. Should Butte rework the candy or sell it as is? Show the work that supports your conclusion. 5. Dexter Smart Co. has productive capacity of only 480,000 machine hours. ABC product utilizes 10 machine hours. It sells for $32 per unit and has variable cost of $12 per unit. DEF product utilizes 2 machine hours. It sells for $24 per unit and has variable cost of $10 per unit. Assuming that the company has unlimited demand for each product, advise the Dexter as to what it should doStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started