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Problem # 3 Metropole Inc. can produce three different products interchangeably on two machines which have a total availability of 100 per period. The accounting
Problem # 3
Metropole Inc. can produce three different products interchangeably on two machines which have a total availability of 100 per period. The accounting department provides the following information on these products.
A | B | C | |
Selling price per unit | $25 | $35 | $45 |
Variable costs per unit | $15 | $27 | $37 |
Time required to produce 1 unit | 6 minutes | 12 minutes | 15 minutes |
Minimum units that must be produced | 100 | none | 140 |
Maximum demand | 200 | none | 200 |
Required:
Determine how many units of each product should be produced for the period and the total contribution margin.
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