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Hooker Electronics manufactures three different gaming consoles: Model A, Model B, and Model C. Plenty of market demand exists for all models. The table below
Hooker Electronics manufactures three different gaming consoles: Model A, Model B, and Model C. Plenty of market demand exists for all models. The table below reports the prices and costs per unit of each product: Model A Model B Model C Selling price $80 $80 $75 Direct materials costs $5 $5 $5 Direct labor costs ($20 per labor hour) $40 $20 $40 Variable support costs ($4 per machine hour) $12 $4 Fixed support costs $15 $15 $15 $8 Assuming that machine hours are limited (i.e., this is the constrained resource), which model is the most profitable to produce? Select one: 0 a. Model A O b. Model B C. Model C d. Models A and B O
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