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Farmer Co . produces two products, basic and deluxe, with unit contribution margins of $ 1 3 and $ 2 1 , respectively. Each product
Farmer Co produces two products, basic and deluxe, with unit contribution margins of $ and $ respectively. Each product must spend time on a special machine, which is a constrained resource and can provide a maximum of hours of machine time per year. The basic product requires minutes of machine time and the deluxe product requires minutes of machine time. If the company can sell all the units it can produce of either product ie there is no demand constraint then what is the profitmaximizing product mix?
basic; deluxe
O basic; deluxe
basic; deluxe
basic; deluxe
None of the above
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