Vaughn Manufacturing can produce and sell only one of the following two products: Oven Contribution Hours Required Margin Per Unit Muffins 0.2 $7 Coffee Cakes 0.3 $8 The company has oven capacity of 3750 hours. How much will contribution margin be if it produces only the most profitable product

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Answer:

The answer is "$131250".

Explanation:

 [tex]\text{Hourly margin of contribution}\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \text{Hourly margin of contribution}[/tex]

[tex]Muffin \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \frac{7}{.2} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 35\\\\Coffee\ Cakes \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \frac{8}{.3} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 26.67[/tex]

The muffin should be made better.

Muffins that can be manufactured.

[tex]\to \frac{3750}{.2} \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ = 18750\\\\ \to 18750 \times 7\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ = 131250 \\\\[/tex]