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Vaughn Manufacturing can sell all the units it can produce of either plain or Fancy but not both Plain has a unit contribution margin of

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Vaughn Manufacturing can sell all the units it can produce of either plain or Fancy but not both Plain has a unit contribution margin of $60 and takes two machine hours to make and Fancy has a unit contribution margin of $57 and takes three machine hours to make. There are 2400 machine hours available to manufacture a product. What should Vaughn do? The same total profits exist regardless of which product is made Make Fancy which creates $33 more profit per unit than Plain does. Make Plain which creates $11 more profit per machine hour than Fancy does Make Plain because more units can be made and sold than Fancy

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