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Plz hurry The Mad Hatter Company owns a machine that manufactures two types of chimney caps. Production time is .20 hours for cap A and
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The Mad Hatter Company owns a machine that manufactures two types of chimney caps. Production time is .20 hours for cap A and .40 hours for cap B. The machine's capacity is 2.000 hours per year. Both products are sold to a single customer who has agreed to buy all of the company's output up to a maximum of 1,000 units of cap A and 6,000 units of cap B. Selling prices and variable costs per unit are shown below. Based on this information, what is the Mad Hatter's most profitable sales mix? Parker Plumbing has received a special one-time order for 1.500 faucets (units) at $5 per unit. Parker currently produces and sells 7,500 units at $6.00 each. This level represents 75% of its capacity. Production costs for these units are $4.50 per unit, which includes S3 variable cost and $1.50 fixed cost. To prodUse the special order, a new machine needs to be purchased at a cost of $1.000 with a zero salvage value. Management expects no other changes in costs as a result of the additional productionStep by Step Solution
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