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Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit $25 $20 Machine set-ups
Consider the following production and cost data for two products, L and C: Product L Product C Contribution margin per unit $25 $20 Machine set-ups needed per unit 5 set-ups 2 set-ups The company can only perform 14,300 machine set-ups each period due to limited skilled labor and there is unlimited demand for each product. What is the largest possible total contribution margin that can be realized each period?
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