A company can sell all the units it can produce of either Product A or Product B
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Question:
A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution margin of $16 and takes two machine hours to make and Product B has a unit contribution margin of $22.5 and takes three machine hours to make. If there are 5000 machine hours available to manufacture a product, income will be
A. the same if either product is made.
B.$12500 more if Product A is made.
C.$12500 less if Product B is made.
D.$12500 less if Product A is made.
Related Book For
Managerial economics applications strategy and tactics
ISBN: 978-1439079232
12th Edition
Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris
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