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Paul's Pumps manufactures three different product lines: Model A, Model B, and Model C. Plenty of market demand exists for all models.The table below
Paul's Pumps manufactures three different product lines: 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 Direct materials costs Direct labor costs ($12 per labor hour) $50 $60 $70 $ 6 $6 $6 $12 $12 $24 Variable support costs ($4 per machine hour) $ 4 $ 8 $8 Fixed support costs $10 $10 $10 Assuming that machine hours are limited (i.e., this is the constrained resource), which model is the most profitable to produce? Select one: a. Model A b. Model B c. Model C d. Model A and B would be equally profitable Check
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