Soap Company manufactures Soap X and Soap Y and can sell all it can make of either. Based on the following data, if Soap could reduce the processing time for X by 10%, which of the following statements is true?
X Y
Sales Price $20 $25
Variable Costs 14 15
Hrs needed to process 3 5
A. There would be no difference in the contribution margin per hour as compared to it before the processing time reduction.
B. It would take 162 minutes to process one unit of X.
C. The contribution margin per hour for X would be $2.
D. Soap Y would still be the most profitable.