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The production department. must make a product mix decision in light of a raw material shortage. The following data is available for the products: PRODUCT

The production department. must make a product mix decision in light of a raw material shortage. The following data is available for the products:

PRODUCT A
PRODUCT B 
PRODUCT C
Sale value per unit
$ 12.00 $ 9.00 $ 12.00
Direct materials
$ 4.00 $ 2.00 $ 6.00
Direct labor $ 3.00 $ 3.00 $ 1.50
Variable manufacturing overhead 
$ 3.00 $ 2.00 $ 2.50
Required number of pounds of direct materials per unit 
2 1 3
Maximum sales (in units)
2,500 3,500 1,000
a. Determine the contribution margin and percentage of each product. b. Determine the number of units of products A, B, and C that must be produced if only 10,000 pounds are available for the month of direct raw material. c. The commercial manager proposes to reduce the sales values by 10% because they inform him that they have 20,000 pounds of raw material, indicate: - Contribution margin per product for every pound available - Indicate if the decision was adequate, how much useful gender

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