Folders Office Supply makes two types of paper pads, legal and regular. A box of legal pads

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Folders Office Supply makes two types of paper pads, legal and regular. A box of legal pads requires 20 minutes to produce and a box of regular pads requires 10 minutes to produce. Two people work on the production line, which operates 7.5 hours per day, 5 days a week. The company can sell any combination of boxes of legal and regular pads up to a maximum of 300 boxes of pads per week. The legal pads have a contribution margin of $ 18 a box and the regular pads have a contribution margin of $12 a box.
Required:
Using the graphic method, determine the quantity of legal and regular pads that should be produced daily to maximize total contribution margin. Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
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Cost Accounting

ISBN: 978-0759338098

14th edition

Authors: William K. Carter

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