Question
Ptarmigan Company produces two products. Product A has a contribution margin of $82.50 and requires 11 machine hours. Product B has a contribution margin of
Ptarmigan Company produces two products. Product A has a contribution margin of $82.50 and requires 11 machine hours. Product B has a contribution margin of $102.20 and requires 14 machine hours. Determine the most profitable product assuming the machine hours are the constraint. If required, round your answers to two decimal places.
| Contribution margin per machine hour: | |
| Product A | $fill in the blank 1 |
| Product B | $fill in the blank 2 |
b. Product A or B is the most profitable?
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
7th edition
978-1118344262, 111834426X, 1118162285, 978-1118562208, 1118562208, 978-1118162286
