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1.A manufacturing company produces three products. Machine hours are limited. The following information is provided: Product 1 Product 2 Product 3 Selling price 80 300
1.A manufacturing company produces three products. Machine hours are limited. The following information is provided:
Product 1
Product 2
Product 3
Selling price
80
300
900
Variable expenses
50
180
450
Contribution Margin
?
?
?
Machine hours required
0.5
1.5
6
Determine the contribution margin per limited resource for each product. Ignoring time constraints, which sales mix would produce the largest profit?
What is the optimal sales mix based on the contribution margin of the limited resource
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