Question: Answer all questions fully. Show calculations. If using other side of paper and/or additional sheets for additional work, remember to return images of such along
Answer all questions fully. Show calculations. If using other side of paper and/or additional sheets for additional work, remember to return images of such along with these 3 pages. Essay Question No. 3 Chastain Corporation produces three products, with costs and selling prices as follows: $ Selling price per unit Variable costs per unit Contribution margin per unit Product A $ 30 100% 18 60% 12 40% Product B $ 20 100% 15 75% $ 5 25% Product C 15 100% 6 40% 9 60% $ A particular machine is the bottleneck. On that machine, 3 machine hours are required to produce each unit of Product A, 1 hour is required to produce each unit of Product B, and 2 hours are required to produce each unit of Product C. Required: a. Prepare an analysis of the contribution margin per unit of the constrained resource. b. Rank the products from the most profitable to the least profitable use of the constrained resource
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