Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, $78, and $32, respectively
Posted: Mon May 30, 2022 8:15 am
Widgeon Co. manufactures three products: Bales, Tales, and Wales. The 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. The product with the highest contribution margin per machine hour is Oa. Bales and Tales have the same contribution margin. Ob. Tales Oc. Bales 4 Od. Wales