Question
Holden Company produces three products, with costs and selling prices as follows: Product A Product B Product C Selling price per unit................ $28 100% $20
Holden Company produces three products, with costs and selling prices as follows:
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| Product A | Product B | Product C | |||
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| Selling price per unit................ | $28 | 100% | $20 | 100% | $15 | 100% |
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| Variable costs per unit............. | 18 | 60% | 15 | 75% | 6 | 40% |
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| Contribution margin per unit.... | $10 | 40% | $ 5 | 25% | $ 9 | 60% |
A particular machine is a bottleneck. On that machine, 3 machine hours are required to produce each unit of Product A, 2 hour is required to produce each unit of Product B, and 2 hours are required to produce each unit of Product C. In which order should it produce its products?
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Auditing and Assurance Services
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
6th edition
978-1259197109, 77632281, 77862341, 1259197107, 9780077632281, 978-0077862343
