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Dolphin Company produces and sells four products; A, B, C and D. The company uses the traditional approach to determine its most profitable product mix.

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Dolphin Company produces and sells four products; A, B, C and D. The company uses the traditional approach to determine its most profitable product mix. Direct labor is the constraint. The following data relate to its four products: Product Labor Time in Hours per Unit 5 Weekly Demand Selling Price per Variable Cost per Direct Material (in Units) Unit Unit Cost per Unit 180 400 200 50 120 280 120 100 90 360 220 20 150 300 150 60 2 B 4 3 D There are total of 990 hours available per week. Total fixed costs are $3,100 per week. Problem 3-2 What is the throughput margin per hour for product A? O 40 80 70 36

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