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1 1 - 4 3 Product mix, special order. ( N . Melumad, adapted ) Gormley Precision Tools makes cutting tools for metalworking operations. It
Product mix, special order. N Melumad, adapted Gormley Precision Tools makes cutting tools for metalworking operations. It makes two types of tools: A a regular cutting tool, and EX a highprecision cutting tool. A is manufactured on a regular machine, but EX must be manufactured on both the regular machine and a highprecision machine. The following information is available: A EX Selling price $ $ Variable manufacturing cost per unit $ $ Variable marketing cost per unit $ $ Budgeted total fixed overhead costs $ $ Hours required to produce one unit on the regular machine Additional information includes the following: a Gormley faces a capacity constraint on the regular machine
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