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Ivanhoe Corporation produces three products, Standard, Deluxe and Superior, with the following characteristics: Standard Deluxe Superior Selling price per unit $23 $25 $24 Variable cost

Ivanhoe Corporation produces three products, Standard, Deluxe and Superior, with the following characteristics:

Standard

Deluxe

Superior

Selling price per unit

$23

$25

$24

Variable cost per unit

17

20

21

Contribution margin per unit

$6

$5

$3

Machine hours per unit

2

2

2

The company has only 1840 machine hours available each period. If demand exceeds the company's capacity, in what sequence should orders for the three products be filled to maximize the company's total contribution margin?

Standard first, Superior second, Deluxe third

Standard first, Deluxe second, Superior third

Deluxe first, Standard second, Superior third

Superior first, Standard second, Deluxe third

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