Widgeon Co

question 144

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.
Which product has the highest contribution margin per machine hour?

• A) Bales
• B) Tales
• C) Wales
• D) Bales and Tales have the same

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Definitions:

Suggestive Selling

A sales technique where the seller recommends additional products or services to the buyer.

Extended Warranty

An additional warranty that covers the repair or replacement of items beyond the original manufacturer's warranty.

Need-satisfaction Format

A sales approach focusing on identifying and meeting the needs, wants, or challenges of customers as a priority.

Marketing Concept

A philosophy that firms should analyze the needs of their customers and make decisions to satisfy those needs, better than the competition.