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CAN YOU PLEASE SHOW YOU WORK STEP BY STEP, THANK YOU! REQUIRED: A. Should Santos Company continue to make the part or should they buy
CAN YOU PLEASE SHOW YOU WORK STEP BY STEP, THANK YOU!
REQUIRED: A. Should Santos Company continue to make the part or should they buy the part? B. Assume instead that if Santos buys the part, no fixed costs can be eliminated, but the productive capacity released can now be used to produce a new product with a contribution margin of $55,000. Should Santos make the part or should they buy the part? Product Mix Decision with Scarce Resources II. Bethel Company owns a machine that can produce three specialized products. The following information is available: Product Product B Product Z Selling price per unit $120 $160 $220 Variable costs per unit $40 $90 $110 Machine hours required to produce one unit 4 hours 2 hours 5 hours Demand 400 units 350 units 300 units The machine has a capacity of 3,000 total machine hours. REQUIRED: Determine the number of units of each product that should be produced to maximize contribution margin; based on your answer, compute the total contribution margin for Bethel CompanyStep by Step Solution
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