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- 1. Happy Bauer has the capacity to produce either 33,000 corncob pipes or 17,000 cornhusk dolls per year. The pipes cost $3.50 each to produce and sell for $8.50 each. The dolls sell for $11.00 each and cost $4.50 to produce. A. Calculate the contribution margin per unit for Pipes and Dolls. (Round your answers to 2 decimal places.) Calculate the total contribution margin for Pipes and Dolls. Pipes Dolls Contribution Margin per unit b. Calculate the total contribution margin for Pipes and Dolls. Pipes Dolls Total contribution margin Solution A. Calculate the contribution margin per unit for Pipes and Dolls Solution- The per unit contribution margins for the products are shown below: b. Calculate the total contribution margin for Pipes and Dolls. Solution- The total contribution margin for each product is shown below: Pipes Dolls Revenue $8.50 $11 Variable costs 3.50 4.50
- 2. Contribution margin $5.00 $6.50