Happy Bauer has the capacity to produce either 45,000 corncob pipes or 21,000 cornhusk dolls per year. The pipes cost $3 each to produce and sell for $7.50 each. The dolls sell for $10 each and cost $4 to produce.
A. Calculate the contribution margin per unit for Pipes and Dolls. (Round your answers to 2 decimal places.)
B. Calculate the total contribution margin for Pipes and Dolls.
C. Assuming that Happy Bauer can sell all it produces of either product, should it produce the corncob pipes or the cornhusk dolls?