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Throughput Costing and Bottleneck Analysis : A manufacturing company produces multiple products using a common bottleneck machine. The bottleneck machine has a capacity of 1,000
Throughput Costing and Bottleneck Analysis: A manufacturing company produces multiple products using a common bottleneck machine. The bottleneck machine has a capacity of 1,000 hours per month. Product A requires 2 hours of machine time and sells for $100 with variable costs of $40. Product B requires 3 hours of machine time and sells for $150 with variable costs of $60. Determine which product the company should prioritize to maximize throughput contribution.
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