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

question 16

Multiple Choice

Greg's Breads can produce and sell only one of the following two products: The company has oven capacity of 1,500 hours. How much will contribution margin be if it produces only the most profitable product?

• A) $15,000
• B) $20,000
• C) $22,500
• D) $30,000

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Definitions:

Pyroclastic Flow

A fast-moving current of hot gas and volcanic materials (such as ash and rock fragments) that flows down the side of a volcano during an explosive eruption.

Mudflows

Fast-moving rivers of mud, usually triggered by heavy rainfall or volcanic activity, capable of causing significant damage.

Landslides

The rapid movement of a large amount of earth material, such as rock or soil, down a slope, often triggered by rain or earthquakes.

Mudflows

Rapidly flowing mixtures of water and sediment, usually occurring in areas with steep terrain and loose soil, often initiated by intense rainfall or volcanic activity.