ABC Company has limited number of machine hours that it can use for manufacturing two products, A and B. each product has a selling price of P160 per unit but product A has 40% contribution margin and Product B has 70% contribution margin. One unit of B takes twice as many machine hours to make as a unit of A. assume either product can be sold in whatever quantity produced, which product(s) should the limited number of machine hours be used for? Product A Product B Both Products A and B Either Product A or Product B Group of answer choices 1 2 3 4

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 3CE: Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins...
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ABC Company has limited number of machine hours that it can use for manufacturing two products, A and B. each product has a selling price of P160 per unit but product A has 40% contribution margin and Product B has 70% contribution margin.  One unit of B takes twice as many machine hours to make as a unit of A.  assume either product can be sold in whatever quantity produced, which product(s) should the limited number of machine hours be used for?

  1. Product A
  2. Product B
  3. Both Products A and B
  4. Either Product A or Product B
Group of answer choices
1
2
3
4
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