Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, S78, and...

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Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, S78, and 532, respectively. The variable costs for cach 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 I hour. Assume that Widgeon Co. produced enough product with the highest contribution margin per unit to use 1,000 hours of machine time. Product demand does not warrant any more production of that product. The maximum additional contribution margin that can be realized by utilizing the remaining 1,000 hours on the product with the second highest contribution margin per hour is $7,000 $28,000 $4,000 $35,000 Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, S78, and 532, respectively. The variable costs for cach 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 I hour. Assume that Widgeon Co. produced enough product with the highest contribution margin per unit to use 1,000 hours of machine time. Product demand does not warrant any more production of that product. The maximum additional contribution margin that can be realized by utilizing the remaining 1,000 hours on the product with the second highest contribution margin per hour is $7,000 $28,000 $4,000 $35,000

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Solution Answer Particluars Bales Tales Wales Selling Price 55 78 32 Less Variable Cost 20 50 15 Co... View the full answer