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A company produces two products, E and F, in batches of 100 units. The production and cost data are: Contribution margin per batch Machine set-ups
A company produces two products, E and F, in batches of 100 units. The production and cost data are: Contribution margin per batch Machine set-ups needed per batch Product E $450 25 Product F $340 20 The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product. What is the differential profit from producing product E instead of product F for the year?
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