Question: Product A: Price per unit: $120; Variable cost per unit: $60; 3 machine hours required. Product B: Price per unit: $90; Variable cost per unit:

  • Product A: Price per unit: $120; Variable cost per unit: $60; 3 machine hours required.
  • Product B: Price per unit: $90; Variable cost per unit: $40; 2 machine hours required.
  • Product C: Price per unit: $80; Variable cost per unit: $30; 5 machine hours required.
  • Product D: Price per unit: $70; Variable cost per unit: $30; 1 machine hour required.

The scarce resource in the company is machine hours.

Which product should the company emphasize in its marketing campaign?

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