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See problem below 6. Elliott Company produces three products. The manufacture of these products is partially automated. Total available labor hours are 1,000 hours. Time
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6. Elliott Company produces three products. The manufacture of these products is partially automated. Total available labor hours are 1,000 hours. Time requirements and contribution margins per unit for each product are as follows: Product X Product Y Product Z Labor hours per unit Contribution margin per unit 5 $20 6 $15 2 $6 Required: a. Which product or products would you produce assuming the 1,000 labor hours and that you can sell everything you make? b. What is the maximum amount of contribution margin you can earn with 1,000 labor hours? c. How would you answer if you must sell at least 50 units of Product Y? d. How would your answer change if you must sell 50 units of Product Y, and can only sell up to 100 units of Product X? What would be your product mix? What would be your total contribution marginStep by Step Solution
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