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Problem 7.44A a-c Manning Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality
Problem 7.44A a-c Manning Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Manning is currently operating at full capacity with limited machine time. Sales and production information relevant to each model is as follows: Product Standard $55.40 $17.00 Deluxe $93.30 Economy Selling price $27.50 Variable costs and expenses $12.00 Machine hours required 0.5 $42.50 0.8 1.6 Ignoring the machine time constraint, which single product should Manning Industries produce? Manning Industries should produce What is the contribution margin per unit of limited resource for each product? (Round answers to 2 decimal places, e.g. 15.75.) Model Contribution Margin Economy per machine hour $ Standard per machine hour Deluxe per machine hour $
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