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A company has 100,000 hours of capacity and manufactures two products, Product X and Product Z. Neither product has enough demand to utilize the entire
A company has 100,000 hours of capacity and manufactures two products, Product X and Product Z. Neither product has enough demand to utilize the entire capacity, but the combined demand of both products exceeds the capacity of the plant. It takes one hour to make one unit of Product X and two hours to make one unit of Product Z. The following information is available: Product X Product Z Units produced from capacity available 100,000 50,000 Contribution margin per unit $20 $30 What product or products should be made?
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