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A company makes two products, R1 and R2. The limiting resource for the company is 7,200 hours per month. R1 has a contribution margin per
A company makes two products, R1 and R2. The limiting resource for the company is 7,200 hours per month. R1 has a contribution margin per unit of $400 and R2 has a contribution margin per unit of $100. Machine hours per unit for R1 and R2 are 2.0 and 0.25, respectively. If the is able to increase machine capacity to 7,500 hours and increase the production of only one of these products, what amount of contribution margin is available under each alternative for the additional 300 hours? Select one: O R1: $120,000; R2: $30,000 O R1:$60,000; R2: $ 120,000 O R1:$200; R2: $400 O R1:$240,000; R2: $7,500
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