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Company manufactures three models of office chairs: economy, basic and deluxe. Economy Basic Deluxe Sales price (per unit) $150 $210 $320 Variable manufacturing costs (per
- Company manufactures three models of office chairs: economy, basic and deluxe.
| Economy | Basic | Deluxe |
Sales price (per unit) | $150 | $210 | $320 |
Variable manufacturing costs (per unit) | $40 | $80 | $200 |
Variable selling costs (per unit) | $30 | $30 | $30 |
Unavoidable Allocated Fixed manufacturing costs (per unit) |
$20 |
$45 |
$70 |
If Sandy has excess capacity, and there is unsatisfied demand for all three products, which model should they produce?
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