Exercise 6-22A (Algo) Scarce resource decision (Appendix) LO 6-7 Sweet Taste has the capacity to produce either 47,000 corncob pipes or 25,000 cornhusk dolls per year. The pipes cost $5.50 each to produce and sell for $12.50 each. The dolls sell for $15.00 each and cost $6.50 to produce. Required Calculate the contribution margin per unit and the total contribution margin for Pipes and Dolls. Assuming that Sweet Taste can sell all it produces of either product, should it produce the corncob pipes or the cornhusk dolls? Note: Round "Contribution margin per unit" answers to 2 decimal places. Contribution margin per unit Total contribution margin Should it produce the corncob pipes or the cornhusk dolls? Pipes Dolls

Exercise 6-22A (Algo) Scarce resource declslon (Appendix) LO 6-7 Sweet Taste has the capacity to produce either 47,000 corncob pipes or 25,000 cornhusk dolls per year. The pipes cost $5,50 each to produce and sell for $12.50 each. The dolls sell for $15.00 each and cost $6.50 to produce. Required Calculate the contribution margin per unit and the total contribution margin for Pipes and Dolls. Assuming that Sweet Taste can sell all it produces of either product, should it produce the corncob pipes or the cornhusk dolis? Note: Round "Contribution margin per unit" answers to 2 decimal places