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Use the following information for the next THREE questions. Expo Corporation produces three products. At the end of March, one of Expo's machines broke down
Use the following information for the next THREE questions. Expo Corporation produces three products. At the end of March, one of Expo's machines broke down and will not be repaired until June. As a result, only 15,000 machine hours are available per month. Expo is evaluating which products should be produced during April. The following data is available: 15. What product makes the most profitable use of machine hours? a. F b. G c. H d. F or G e. G or H 16. How many units of each product should Expo produce in order to maximize profit for April? 16. How many units of each product should Expo produce in order to maximize profit for April? 17. Expo can lease a machine by the hour for use during April. If it plans to use the leased machine to produce product H, what is the maximum amount Expo should pay per machine hour? a. $6.25 b. $4.50 c. $3.75 d. $4.00 e. $60.00 18. When a company is considering a special order, total fixed manufacturing overhead is a relevant cost. a. True b. False
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