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Amy developed an innovative computer game, called Home By Myself (HBM). It was so successful that she quickly followed up with two sequels: Home By

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Amy developed an innovative computer game, called Home By Myself (HBM). It was so successful that she quickly followed up with two sequels: Home By Myself II (HBM2) and Home By Myself III (HBM3). The costs of developing the games were $94,000 for HBM, $5,500 for HBM2, and $15,000 for HBM3. The production process consists of using her computer to copy the games to blank DVDs and then packing them with printed instructions in a display box. It takes longer to copy the original game than it takes to copy the sequels. Amy can produce, ready for shipping, about 20 copies of HBM, 30 copies of HBM2, or 45 copies of HBM3 in an hour, and she normally works 8 hours per day. HBM HBM2 HBM3 Selling price $ 48.70 $ 30.60 $ 30.60 Costs Blank DVD 1.10 0.60 0.60 Instructions and packaging 3.80 1.80 1.80 Prorated development costs* 18.80 1.10 3.00 Margin $ 25.00 $ 27.10 $ 25.20 Daily demand 140 games 120 games 90 games *The prorated development costs were determined for each game by dividing the game's development costs by 5,000, the estimated minimum total demand for each game. Your answer is correct. What is the contribution margin per hour of Amy's time for each game? (Round all entries to 2 decimal places, e.g. 5.35.) HBM HBM2 HBM3 Contribution margin per hour: 1376) $1846 $1,269 Your answer is correct. In what order should Amy produce the games? Production order: [HBM3, then HBM, and then HBM2) x Your answer is incorrect. Try again. Using the general decision rule for constrained capacity, what is the most Amy should be willing to pay per hour for a worker to duplicate and pack DVDs after her normal working hours? (Assume that the worker would work at the same pace as Amy.) (Round entry to 2 decimal places, e.g. 5.35.) Willing to pay: X 852 per hour

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