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The lCool Company has met all production requirements for the current month and has an opportunity to manufacture additional units with its excess capacity. Unit
The lCool Company has met all production requirements for the current month and has an opportunity to manufacture additional units with its excess capacity. Unit selling prices and unit costs for three product nes follow. Direct labor at$2t2l nerhour -EI _ ma 1Wariahle overhead is applied on the basis of direct labor dollars, whereas xed overhead is applied on the basis of machine hours. There is sufcient demand for the additional mamrihctme of all products- A. It Cool Company has excess machine capacity and can add more labor as needed (i.e.= neither machine capacity nor labor is a constraint}, which product is the most attractive to produce? E- It Cool Company has excess machine capacity but a limited amount of labor time available, which product or products should be manufactured in the excess capacity
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