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Newton Manufacturing has 68,200 labor hours available for producing M and N. Consider the following information: Product M Product N Required labor time per unit
Newton Manufacturing has 68,200 labor hours available for producing M and N. Consider the following information:
Product M | Product N | |
---|---|---|
Required labor time per unit (hours) | 4 | 5 |
Maximum demand (units) | 6,300 | 9,000 |
Contribution margin per unit | $ 10.00 | $ 10.50 |
Contribution margin per labor hour | $ 2.50 | $ 2.10 |
If Newton follows proper managerial accounting practices in terms of setting a production schedule, how much contribution margin would the company expect to generate?
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