Question: Exercise 6-22A (Algo) Scarce resource decision (Appendix) LO 6-7 Sweet Taste has the capacity to produce elther 56,000 corncob pipes or 34,000 cornhusk dolls per
Exercise 6-22A (Algo) Scarce resource decision (Appendix) LO 6-7 Sweet Taste has the capacity to produce elther 56,000 corncob pipes or 34,000 cornhusk dolls per year. The pipes cost $275 each to produce and sell for $17.00 each. The dolls sell for $19.50 each and cost $8.75 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 elther product, should It produce the corncob pipes or the cornhusk dolls? (Round "Contributlon margin per unit" answers to 2 decimal places.) Pipes Dolls Contribution margin per unit Total contribution margin Should it produce the comcob pipes or the comhusk dolls
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