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McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $87; Z sells for $108. Variable

McCoy Brothers manufactures and sells two products, A and Z in the ratio of 5:2. Product A sells for $87; Z sells for $108. Variable costs for product A are $46; for Z $53. Fixed costs are $430,500. Compute the contribution margin per composite unit.

Multiple Choice

  • $205.

  • $305.

  • $287.

  • $315.

  • $336.

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