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Raven Co. owns a machine that can produce two specialized products. Production time for Product X is two units per hour and for Product Z
Raven Co. owns a machine that can produce two specialized products. Production time for Product X is two units per hour and for Product Z is four units per hour. The machine's capacity is 2,500 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 4,250 units of Product X and 1,920 units of Product Z. Selling prices and variable costs per unit to produce the products follow. Determine the company's most profitable sales mix and the contribution margin that results from that sales mix. (Round per unit contribution margins to 2 decimal places.)
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