Question
Blossom Productions Limited manufactures and sells three different products of different qualities. They are referred to as: Normal, High, and Superior. The accounting department provides
Blossom Productions Limited manufactures and sells three different products of different qualities. They are referred to as: Normal, High, and Superior. The accounting department provides the following information on these products: Normal High Superior Selling price per unit $35.00 $42.00 $54.00 Variable costs per unit $29.72 $35.00 $51.00 Contribution margin per unit $5.28 $7.00 $3.00 Machine hours required 0.02 0.04 0.08 the limited resource can be increased by 430 hours; calculate the maximum increase in contribution margin. Assume that Blossom can sell all products manufactured.
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