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Cannon Corp manufactures three products: X, Y, and Z. The selling price, variable costs, and contribution margin for one unit of each product follow: The
Cannon Corp manufactures three products: X, Y, and Z. The selling price, variable costs, and contribution margin for one unit of each product follow: The same raw material is used in all three products. Cannon Corp has only 6,000 pounds of raw material on hand and will not be able to obtain any more of it for several weeks due to a strike in its supplier's plant. Management is trying to decide which product(s) to concentrate on next week in filling its backlog of orders. The material costs $8 per pound. Assuming that Cannon has unlimited demand for each of its three products, the maximum contribution margin the company can earn when using the 6,000 pounds of raw material on hand is $[maxcm1] ? \begin{tabular}{l} 112,000 \\ \hline 110,000 \\ \hline 108,000 \\ 100,000 \end{tabular} Question 5 2 pts Assuming that Cannon's estimated customer demand is 500 units per product line, the maximum contribution margin the company can earn when using the 6,000 pounds of raw material on hand is $[maxcm2] ? 80,000100,00082,000108,000
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