Fragrances Inc. (FI) makes three types of perfumes, all of which require a special orchid oil. Due to heavy pesticide use, the bees that pollinate this rare flower are dying off and supplies are limited.
For the current period, FI can only obtain 3,000 ounces of orchid oil. What is the contribution margin per ounce of orchid oil for Orchid Heaven?
|Orchid Heaven||Exotic Whiff||Wild Times|
|Sales price per bottle||\$75.00||\$90.00||\$115.00|
|Ounces required per bottle||0.10 ounces||0.25 ounces||0.50 ounces|
|Market demand, bottles||10,000||4,000||3,000|