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Greg's Breads Can Produce and Sell Only One of the Following

Question 5

Multiple Choice

Greg's Breads can produce and sell only one of the following two products:  Oven  Contribution  Hours Required  Margin Per Unit  Muffins 0.2$3 Coffee Cakes 0.3$4\begin{array}{lll}&\text { Oven } & \text { Contribution } \\&\text { Hours Required } & \text { Margin Per Unit }\\\text { Muffins } & 0.2 & \$ 3 \\\text { Coffee Cakes } & 0.3 & \$ 4\end{array} The company has oven capacity of 1,200 hours.How much will contribution margin be if it produces only the most profitable product?


A) $12,000
B) $16,000
C) $18,000
D) $24,000

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