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Pierson Co. produces three products. It currently has a shortage of machine hours because one of its two machines is down and cannot be repaired.
Pierson Co. produces three products. It currently has a shortage of machine hours because one of its two machines is down and cannot be repaired. It has ordered a new machine, but it will be two months before the new machine will be delivered and installed. The selling price, costs, and machine time requirements of the three products are as follows: Product A Product B Product C Selling Price $5.00 $3.00 $5.00 Variable Costs $3.50 $2.00 $2.00 per Unit Machine Hours per 0.75 0.25 1.00 Unit Pierson has unlimited demand for all its products. Which product or products should Pierson Co. produce to maximize profit until it gets the new machine installed
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