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Dolphin Company produces and sells four products: A, B, C and D. The company uses the traditional approach to determine its most profitable product mix.

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Dolphin Company produces and sells four products: A, B, C and D. The company uses the traditional approach to determine its most profitable product mix. Direct labor is the constraint. The following data relate to its four products: Selling Price Product Weekly Demand (in Units) 180 Variable Cost Direct Material Labor Time in Cost per Unit Hours per Unit per Unit per Unit 400 50 A 5 200 120 B 120 100 280 360 AN 90 220 20 150 D 300 150 60 3 There are total of 990 hours available per week, Total fixed costs are $3,100 per week. Problem 3-2 What is the throughput margin per hour for product A? 0.40 80 0 70 0 36

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