Question

Vaughn Manufacturing can produce and sell only one of the following two products: Oven Contribution Hours Required Margin Per Unit Muffins 0.2 $7 Coffee Cakes 0.3 $8 The company has oven capacity of 3750 hours. How much will contribution margin be if it produces only the most profitable product

Answer 1

The answer is "$131250".

Step-by-step explanation:

`\text{Hourly margin of contribution}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \text{Hourly margin of contribution}`

`Muffin \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ (7)/(.2) \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 35\\\\Coffee\ Cakes \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ (8)/(.3) \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 26.67`

The muffin should be made better.

Muffins that can be manufactured.

`\to (3750)/(.2) \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ = 18750\\\\ \to 18750 * 7\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ = 131250 \\\\`