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Cullumber Industries manufactures chairs and tables that are in high demand by local office furniture stores. Following is information for each of these products:
Cullumber Industries manufactures chairs and tables that are in high demand by local office furniture stores. Following is information for each of these products: Selling price per item Variable cost per item Contribution margin per item Machine hours per item Chairs 625.00 tables and O chairs 430 tables and 195.00 chairs 430 tables and 650 chairs 625.00 chairs and O tables $75.00 Tables $92.00 58.00 73.00 1.60 $17.00 $19.00 1.60 Cullumber has 1000 machine hours available each month. The demand for chairs is 650 units per month and the demand for tables is 430 units per month. In order to maximize company's total contribution margin, how should Cullumber allocate its production capacity between the chairs and tables?
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