Greg's Breads Can Produce and Sell Only One of the Following

question 5

Multiple Choice

Greg's Breads can produce and sell only one of the following two products: $\begin{array}{lll}&\text { Oven } & \text { Contribution } \\&\text { Hours Required } & \text { Margin Per Unit }\\\text { Muffins } & 0.2 & \$ 3 \\\text { Coffee Cakes } & 0.3 & \$ 4\end{array}$ The company has oven capacity of 1,200 hours.How much will contribution margin be if it produces only the most profitable product?

• A)$12,000
• B)$16,000
• C)$18,000
• D)$24,000

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Definitions:

Relative Deprivation

A psychological experience of discontent felt by people who believe they are worse off than others or lack resources or advantages that others have.

More Affluent

Having a greater amount of wealth or resources; typically used to describe individuals or areas with a higher economic status.

Downward Mobility

The phenomenon where individuals or groups experience a decline in their socioeconomic status.

Federal Poverty Line

Federal index that defines “official” poverty in the United States based on household income; updated annually.