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Question: A company manufactures two products, Product A and Product B. The contribution margin for Product A is $30 per unit, and for Product B
Question: A company manufactures two products, Product A and Product B. The contribution margin for Product A is $30 per unit, and for Product B is $50 per unit. The company's total fixed costs are $50,000. Product A requires 5 direct labor hours per unit, while Product B requires 8 direct labor hours per unit. If the company has a maximum of 8,000 direct labor hours available for production: a) Determine the optimal product mix that maximizes total contribution margin. b) Calculate the maximum total contribution margin the company can achieve given the labor hour constraint. Provide your answers rounded to the nearest whole number.
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