Widgeon Co

question 90

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.
What is the contribution margin per machine hour for Tales?

• A) $4
• B) $7
• C) $28
• D) $35

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