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A company manufactures three products. The corporation has had a shortage of available machine hours. The following per unit data relates to the three
A company manufactures three products. The corporation has had a shortage of available machine hours. The following per unit data relates to the three products of the corporation: Product Product Product A B Contribution Margin per machine $13 $10 $19 hour Machine hours required 5 10 4 Assume that only 100,000 machine hours are available next month. Also assume that 11,000 units of each product can be sold in a given month. What is the maximum amount of contribution margin that this company can generate next month given this machine hour shortage? $462,000 $475,000 $353,000 $627,000
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