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Question - Baker Company is a small family business that produces wooden plaques and trophies:
Plaques
Trophies
Selling price per unit
$18
$15
Variable cost per unit
13
6
Contribution margin per unit
$5
$9
Contribution margin ratio
28%
60%
In producing the items, the primary "bottleneck" is due to the fact the company only has one machine, a sander, to sand the wood that is used for the plaques or the trophies. Generally, the wood required for each plaque takes 0.25 hour to sand, while the word required for each trophy takes 0.50 hour to sand. Based on the constraint related to the machine time, which product should be emphasized if only limited machine time is available?
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