Manning Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs

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Manning Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Manning is currently operating at full capacity with limited machine time. Sales and production information relevant to each model is as follows:

Manning Industries manufactures and sells three different models of wet-dry

Instructions
Answer the following questions:
(a) Ignoring the machine time constraint, which single product should Manning Industries produce?
(b) What is the contribution margin per unit of limited resource for each product?
(c) If it could obtain additional machine time, how should the company use the additional time?

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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