Duo Company manufactures two products, Uno and Dos. Contribution margin data follow. Duo company's production process uses
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Duo Company manufactures two products, Uno and Dos. Contribution margin data follow.
Duo company's production process uses highly skilled labor, which is in short supply. The same employees work on both products
and earn the same wage rate.
Required:
Calculate the contribution margin per scarce resource for each of the products assuming an arbitrary time period for which
direct laborers earn $ per unit.
Which of Duo Company's products is most profitable?
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