Question: Happy Bauer has the capacity to produce either 45 000 corncob

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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