Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Thomas wants to develop a line of bath products to sell at the local market as her side hustle. Given her limited time, she wants,
Thomas wants to develop a line of bath products to sell at the local market as her side hustle. Given her limited time, she wants, initially, to focus on the one product which will be most profitable. She has developed the following information: Selling Variable Product Price Costs Soap on a Rope $6.75 $1.75 Bath Bombs $26 $6 Bath Salts $14 $5 Hours Required 0.25 1 0.5 Thomas's market research suggests that the products will be popular, although she suspects that bath bombs are currently more trendy than soap on a rope. Fixed costs are estimated to be $2940 and she plans to spend 686 hours manufacturing the products. What will be the total contribution margin generated if Thomas produces the most profitable product? $13720 $55860 $79380 $52920
Step 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