Yogurt Palace produces two flavors of low-fat frozen yogurt: Blueberry and Raspberry. Information regarding the products is summarized for the month of January in the following table: Yogurt Palace determined it will have only 9,040 hours of processing time during February for which it can produce yogurt, and it must produce a minimum number of each flavor to remain competitive. Of which flavor should Yogurt Palace produce the most units and why?
A) Raspberry. It will contribute a larger amount towards profit for each unit of resource available.
B) Blueberry. It will contribute a larger amount towards profit for each unit of resource available.
C) Blueberry. It generates a higher contribution margin per unit.
D) Raspberry. Fewer units will need to be produced using fewer hours, allowing excess hours for other products.
Correct Answer:
Verified
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