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Assume that Z Company produces two products, X and Y with the following data Sales Variable costs X Y $16 $48 12 40 $40000
Assume that Z Company produces two products, X and Y with the following data Sales Variable costs X Y $16 $48 12 40 $40000 Annual fixed costs If the firm has limited capacity of 2000 labor hours and unlimited demand on both products. Further, assume that X required 4 labor hours to produce and y requires 10 labor hours. Which product is more profitable to produce and sell first? VOA. Product Y because it has higher CM per unit B. Product X because it has higher CM per labor hour OC. Product Y because it has higher CM per machine hour COD. none of the above
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