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Supertronics, Inc., would like to know how the firm's profitability is altered by product mix. Currently, product mix is determined by giving priority to the
Supertronics, Inc., would like to know how the firm's profitability is altered by product mix. Currently, product mix is determined by giving priority to the product with the highest per-unit contribution margin (defined as the difference between price and material cost). Details on the Supertronics product line, including processing time at each workstation, follow:
Alpha Beta Delta Gamma Price $350.00 $320.00 $400.00 $500.00 Material Cost $50.00 $40.00 $125.00 $150.00 Weekly Demand in Units 100 60 50 80 Processing Time at Machine 1 in Minutes 20 0 40 10 Processing Time at Machine 2 in Minutes 25 20 0 50 Processing Time at Machine 3 in Minutes 0 20 60 30Step by Step Solution
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