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Problem 3- Decision making case, product line profitability (10 points) Patriotic Pyros[ PP) bla fireworks manufacturing company. Amnud celebrations...

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Problem 3- Decision making case, product line profitability (10 points)
Patriotic Pyros[ PP) bla fireworks manufacturing company. Amnud celebrations are rapidly approaching, and PP only has 50
pounds of powder left (and their suppliers hurry run out as well). If manufactures two types of fireworks: Aerials (for large
venues) and Grounders (for home usch
Management is wondering which fireworks should be produced with the remaining powder, in order to maximize profits. The
Following information shows the per-unit information regarding the production and sale of these fireworks:
Acrush
Grounden
Pounds of powder
Dred makerich
35.00
Direct labor
56.00
40.00
Variable overtwoand
Fixed overload
52 00
Selling price
Aswarne this selling and administrative costs are negligible at this point, given the current market for fireworks and PP's
cotablished network.
Required
It Which type of firework would be the mod profitable for Patriotic Pyros in produce?
2) What is the contribution margin per unit for each of the two products?
How much contribution margin can be made with those 30,000 pounds of powder?

Top Answer

Grounders are the most profitable firework to produce. Aerial... View the full answer

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