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XYZ Company produces two products, A and B. For the coming period, 135,000 machine hours and 175,000 direct labor hours are available. Information on the
XYZ Company produces two products, A and B. For the coming period, 135,000 machine hours and 175,000 direct labor hours are available. Information on the two products appears below: Product A Product B contribution margin per unit ........... $7.00 $6.50 machine hours per unit ................. 4.00 6.00 direct labor hours per unit ............ 8.00 7.00 Calculate the number of units of Product A that should be produced in order to maximize net income.
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