Question
Southern Production Company has 100 labor-hours available. There is no limit on machine-hours. Southern can sell all of B it wants, but it can only
Southern Production Company has 100 labor-hours available. There is no limit on machine-hours. Southern can sell all of B it wants, but it can only sell 45 units and 20 units of A and C, respectively
|
| Product A | Product B | Product C |
| Contribution margin per unit | $15 | $10 | $12 |
| Labor-hours per unit | 2 | 2.5 | 2 |
| Machine-hours per unit | 5 | 4 | 1 |
Which model is the most profitable to produce? Why?
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Financial Accounting An Introduction
Authors: Pauline Weetman
4th Edition
0273703404, 978-0273703402
