MEM manufactures two products. Product X has a contribution margin of $26 and requires 4 hours of

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MEM manufactures two products. Product X has a contribution margin of $26 and requires 4 hours of machine time. Product Y has a contribution margin of $14 and requires 2 hours of machine time. Assuming that machine time is limited to 3,000 hours, how should it allocate the machine time to maximize its income?

(a) Use 1,500 hours to produce X and 1,500 hours to produce Y.

(b) Use 2,250 hours to produce X and 750 hours to produce Y.

(c) Use 3,000 hours to produce only X.

(d) Use 3,000 hours to produce only Y.

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Related Book For  book-img-for-question

Financial And Managerial Accounting

ISBN: 9781118004234

1st Edition

Authors: Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

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