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The Good Health Baking Company produces a salt-free whole-grain bread and a carob-chip cookie. The demand for these products is exceeding Good Health's production capacity.
The Good Health Baking Company produces a salt-free whole-grain bread and a carob-chip cookie. The demand for these products is exceeding Good Health's production capacity. The company has only 80,000 direct labor hours available. A case of bread requires one direct labor hour, while a case of cookies requires half a direct labor hour. The company estimates that it can sell 100,000 cases of bread and 60,000 cases of cookies in the next year. The following financial information is available: Calculate the contribution margin per direct labor hour. How should Good Health allocate its production capacity between bread and cookies
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