Question
There is unlimited demand for both of David Potter's products, but Peter has limited time and kiln capacity. Thus, David Potter can produce and
There is unlimited demand for both of David Potter's products, but Peter has limited time and kiln capacity. Thus, David Potter can produce and sell only one of the following two products: Mugs Bowl Kiln Hours Required 3 6 Contribution Margin Per Unit $12 $18 The mugs sell for $24 each and have a variable cost of $12. The bowls sell for $30 and have a variable cost of $12. The company's kiln capacity is 3150 hours. If David Potter sells the more profitable product, what is the total contribution margin generated?
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