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Current Attempt in Progress Concord's Coffee can sell all the units it can produce of either latte or cappuccino but not both. Latte has a
Current Attempt in Progress
Concord's Coffee can sell all the units it can produce of either latte or cappuccino but not both. Latte has a unit contribution margin of $ and takes three machine hours to make and cappuccino has a unit contribution margin of $ and takes two machine hours to make. There are machine hours available to manufacture a product. What should Concord's do
Make cappuccino because more units can be made and sold than latte.
Make latte which creates $ more operating income per unit than cappuccino does.
Make cappuccino which creates $ more operating income per constraint than latte does.
The same total operating income exists regardless of which product is made.
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