Shadow price and optimal production Farmington Company produces two products in two production departments. The small product
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Shadow price and optimal production Farmington Company produces two products in two production departments. The small product requires one hour of mixing and 10 hours of curing. The large product requires two hours of mixing and 10 hours of curing. The mixing department has 30 hours of capacity and the curing department has 220 hours of capacity. The small product has a contribution margin of $36 and the large product has a contribution margin of $50 per unit.
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