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Hawbaker Company Manufactures Two Styles of Mops, Wood and Steel

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Essay

Hawbaker Company manufactures two styles of mops, Wood and Steel. The following information is available: Hawbaker Company manufactures two styles of mops, Wood and Steel. The following information is available:   Hawbaker can sell a maximum of 5,000 units of each style of mop. Labour hour capacity for the year is 20,000 hours. Required: a. Which style has the highest contribution margin per unit? b. Which style has the highest contribution margin per hour? c. How many of each style of mop would Hawbaker have to produce to maximize income? What would the maximum income level be? Hawbaker can sell a maximum of 5,000 units of each style of mop. Labour hour capacity for the year is 20,000 hours.
Required:
a. Which style has the highest contribution margin per unit?
b. Which style has the highest contribution margin per hour?
c. How many of each style of mop would Hawbaker have to produce to maximize income? What would the maximum income level be?

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Definitions:

Polygamy

A marital practice in which an individual has more than one spouse simultaneously, recognized in some cultures and religions.

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Persons who earn the primary source of income for a household, supporting the family's financial needs.

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An intimate group of two or more people who (1) live together in a committed relationship, (2) care for one another and any children, and (3) share activities and close emotional ties.

Deteriorating

Experiencing a decline in quality, condition, or vitality over time.

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