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Xcelerate Productions Limited manufactures and sells three different products of different qualities. They are referred to as: Normal, High, and Superior. The accounting department provides
Xcelerate Productions Limited manufactures and sells three different products of different qualities. They are referred to as: Normal, High, and Superior. The accounting department provides the following information on these products:
Normal High. Superior
Selling price per unit $30 $41 $52
Variable costs per unit $25 $35 $48
Contribution margin per unit. $5. $6 $4.
Machine hours required 0.02. 0.04 0.08
If the limited resource can be increased by 600 hours, how can the company maximize the overall contribution margin?
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