Question: Bramble Corp. can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margin of
Bramble Corp. can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margin of $ 58 and takes two machine hours to make and Fancy has a unit contribution margin of $ 57 and takes three machine hours to make. There are 2400 machine hours available to manufacture a product. What should Bramble do?
The same total profits exist regardless of which product is made.
Make Fancy which creates $ 30 more profit per unit than Plain does.
Make Plain which creates $ 10 more profit per machine hour than Fancy does.
Make Plain because more units can be made and sold than Fancy.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock

Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock