Morris Inc

question 40

Essay

Morris Inc.manufactures two products: Widgets and Gizmos.Widgets have a contribution margin per unit of $30 and require 2 hours of direct labour while Gizmos have a contribution margin per unit of $39 and require 3 hours of direct labour.
A. In the short-run, how should the company choose which product to produce or sell first if direct labour hours are a constraint?
B. Assuming there is sufficient demand for each of these products, which of the above products should the company maximise production of first? Show calculations to support your answer.

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Definitions:

Generalization

The process of responding similarly to different but related stimuli, often used to explain behaviors in both human and animal learning.

Moving Cars

A simple reference to the action or process of cars being in motion, often studied in fields like traffic analysis and physics.

Moving Trucks

Large vehicles used for transporting household goods and furniture from one location to another during the process of relocation.

Discrimination

Discriminatory behavior that unfairly targets people from diverse backgrounds, primarily because of their racial, age, gender, or disability status.