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Balloon, Inc. produces three types of balloonssmall, medium, and largewith the following characteristics: Small Medium Large Selling price per unit $5 $8 $10 Variable cost

Balloon, Inc. produces three types of balloonssmall, medium, and largewith the following characteristics:

Small

Medium

Large

Selling price per unit

$5

$8

$10

Variable cost per unit

3

5

6

Contribution margin per unit

$2

$3

$4

Machine hours per unit

1

2.4

3

Demand in units

500

1,000

800

The company has only 2,000 machine hours available each month.

How many units of each type of balloon should the company make to maximize its total contribution margin?

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