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Widgeon Co. manufactures three products: Bales, Tales, and Wales. Their selling prices are $55, $78, and $32, respectively. The variable costs for each product are
Widgeon Co. manufactures three products: Bales, Tales, and Wales. Their selling prices are $55, $78, and $32, respectively. The variable costs for each product are $20, $50, and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process; Tales, 7 hours; and Wales, 1 hour. Assuming that Widgeon Co. can sell all of the products it can make, what is the maximum contribution margin it can earn per month?
a.$56,000
b.$70,000
c.$34,000
d.$49,000
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