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We Can Reach It produces ladders for household use. The company makes two types: step ladders and 12-foot adjustable ladders. Demand for the products is
We Can Reach It produces ladders for household use. The company makes two types: step ladders and 12-foot adjustable ladders. Demand for the products is so high that We Can Reach It can sell as many of each size as it can produce. The company uses the same machinery to produce both products. The machinery can only run for 1,960 hours per period. We Can Reach It can produce 13,12 -foot ladders every hour, whereas it can produce 18 step ladders in the same amount of time. Fixed costs amount to $136,200 per period. Sales prices and variable costs are as follows: 1. Calculate the Contribution Margin per machine hour. 2. To maximize profit, which product should they emphasize: 3. What will the company's operating income be
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