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Analyzing Profitability Considering a Scarce Resource Assume that Innovative Components Inc. produces only three different types of injection - molded knobs. It produces the Pointer

Analyzing Profitability Considering a Scarce Resource
Assume that Innovative Components Inc. produces only three different types of injection-molded knobs. It produces the Pointer Knob, which is used for on/off devices, the Instrument Knob, which is used for precision adjustment, and the Star Knob, which is used for snowblowers and lawnmowers. The factory machine capacity is the company's constraining resource. It operates at 90% capacity and management wants to devote the unused capacity to one of the products. The following data represents the current operations.
\table[[Per-case data,Pointer Knob,Instrument Knob,Star Knob],[Sales price,$20.00,$32.00,$6.00
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