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.
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) $49,000
B) $70,000
C) $56,000
D) $34,000
Correct Answer:
Verified
Q91: What cost concept used in applying the
Q93: The target cost approach assumes that
A) markup
Q98: Mallard Corporation uses the product cost concept
Q99: Flyer Company sells a product in a
Q99: What cost concept used in applying the
Q102: Widgeon Co. manufactures three products: Bales, Tales,
Q103: Miramar Industries manufactures two products: A and
Q104: Magpie Corporation uses the total cost concept
Q106: Miramar Industries manufactures two products: A and
Q136: Use this information for Magpie Corporation
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents