Smoky Mountain Mugs produces 16 oz. insulated coffee mugs and 32 oz. insulated tumblers The company's...
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Smoky Mountain Mugs produces 16 oz. insulated coffee mugs and 32 oz. insulated tumblers The company's products are in high demand due to the quality and durability of the products. Smoky Mountain Mugs estimates it could sell 960 tumblers per month and 1,375 coffee mugs per month. Following is information for each of these products: Turnbler Coffee Mug Selling Price / unit $32.00 $23.00 Variable Cost / unit 18.00 12.00 Contribution Margin / unit $14.00 $11.00 Machine Hours / unit 1.25 0.80 Smoky Mountain Mugs has 1,800 machine hours available each month. In order to maximize the company's total contribution margin, how should Smoky Mountain Mugs allocate its production capacity between the tumblers and coffee mugs? O O Tumblers and 2,250 Coffee mugs. O 1,440 Tumblers and 0 Coffee mugs. O 560 Tumblers and 1,375 Coffee mugs. O 960 Tumblers and 750 OCoffee mugs. Smoky Mountain Mugs produces 16 oz. insulated coffee mugs and 32 oz. insulated tumblers The company's products are in high demand due to the quality and durability of the products. Smoky Mountain Mugs estimates it could sell 960 tumblers per month and 1,375 coffee mugs per month. Following is information for each of these products: Turnbler Coffee Mug Selling Price / unit $32.00 $23.00 Variable Cost / unit 18.00 12.00 Contribution Margin / unit $14.00 $11.00 Machine Hours / unit 1.25 0.80 Smoky Mountain Mugs has 1,800 machine hours available each month. In order to maximize the company's total contribution margin, how should Smoky Mountain Mugs allocate its production capacity between the tumblers and coffee mugs? O O Tumblers and 2,250 Coffee mugs. O 1,440 Tumblers and 0 Coffee mugs. O 560 Tumblers and 1,375 Coffee mugs. O 960 Tumblers and 750 OCoffee mugs.
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Answer The correct answer is C 560 tumblers and 1375 coffee ... View the full answer
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