Question 11 Bonita Industries can sell all the units it can produce of either Plain...
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Question 11 Bonita Industries can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution margin of $52 and takes two machine hours to make and Fancy has a unit contribution margin of $57 and takes three machine hours to make. There are 2400 machine hours available to manufacture a product. What should Bonita do? The same total profits exist regardless of which product is made. Make Fancy which creates $21 more profit per unit than Plain does. Make Plain because more units can be made and sold than Fancy. Make Plain which creates $7 more profit per machine hour than Fancy does
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