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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

  1. 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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