Question

Happy Bauer has the capacity to produce either 45,000 corncob pipes or 21,000 cornhusk dolls per year. The pipes cost $3 each to produce and sell for $7.50 each. The dolls sell for $10 each and cost $4 to produce.

Required
Assuming that Happy Bauer can sell all it produces of either product, should it produce the corncob pipes or the cornhusk dolls? Show computations to support your answer.



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  • CreatedFebruary 07, 2014
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