Widgeon Co

question 139

Multiple Choice

Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, $78, and $32, respectively. The variable costs for each product are $20, $50, and $15, respectively. Each product must go through the same processing in a machine that is limited to 2,000 hours per month. Bales take 5 hours to process; Tales 7 hours; and Wales 1 hour.​
-The contribution margin per machine hour for Tales is

• A)$4
• B)$7
• C)$28
• D)$35

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Definitions:

Non-salary Expenses

Costs incurred by a business or individual that are not related to direct wages or salaries, such as utilities, rent, or equipment.

Health Insurance

Health insurance is a form of insurance coverage that pays for medical and surgical expenses incurred by the insured, providing financial protection against high healthcare costs.

Sensibly Persistent

Exhibiting persistence in a manner that is reasonable and pragmatic, balancing determination with rational judgment.