Apple Farms produces three kinds of apples desserts. Dessert A has a contribution margin of $60, requires 2 hours to bak

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899604
Joined: Mon Aug 02, 2021 8:13 am

Apple Farms produces three kinds of apples desserts. Dessert A has a contribution margin of $60, requires 2 hours to bak

Post by answerhappygod »

Apple Farms produces three kinds of apples desserts. Dessert A
has a contribution margin of $60, requires 2 hours to bake, and has
maximum sales of 24,000 units. Dessert B has a contribution margin
of $90, requires 4 hours to bake, and has maximum sales of 20,000
units. Dessert C has a contribution margin of $120, requires 6
hours to bake, and has maximum sales of 15,000 units. Apple Farms
has a total of 200,000 baking hours available. Which of the
following production plans is the best use of the available baking
hours?
Select one:
a. A – 15,000 units, B – 20,000 units, C – 15,000 units.
b. A – 24,000 units, B – 20,000 units, C – 15,000 units.
c. A – 24,000 units, B – 15,500 units, C – 15,000 units.
d. None of the other choices.
e. A – 24,000 units, B – 20,000 units, C – 12,000 units.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply