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A firm uses activity-based costing. Its activity rates are as follows. $100 per machine hours, $500 per batch start, $5 per order. The firm produces

A firm uses activity-based costing. Its activity rates are as follows. $100 per machine hours, $500 per batch start, $5 per order.

The firm produces several products. Two of these products have the following data.

Product 1: $44,000 revenue, $10,000 direct costs, 50 machine hours, 5 batch starts, 100 orders

Product 2: $46,000 revenue, $20,000 direct costs, 20 machine hours, 8 batch starts, 200 orders

The firms product sales mix is 3:1 for product 1 and 2, respectively.

Which of these re-mixes is LEAST profitable to the firm? (Assume the same number of bundles would be sold.)

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