contestada

Bramble Corp. can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margin of $58 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 Bramble do?

Respuesta :

Answer:

plain makes a profit of $10

Explanation:

The computation is shown below:

Particulars                              Plain            fancy

Unit contribution margin        $58            $57

Machine hours                         2               3

Contribution margin

per machine hour                  $29               $19

                                ($58 ÷ 2)               ($57 ÷3)

As we can see that the plain makes a profit of $10 that comes from

= $29 - $19

= $10

Otras preguntas