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Assume a company makes only three products, A, B, and C: Estimated customer demand in units Selling price per unit Variable cost per unit Machine-hours per unit Product A Product B 700 600 $ 80 $ 65 $ 35 $ 26 2.5 3.0 Product C 800 $ $ 20 1.25 The company has only 1,700 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource?

Assume a company makes only three products, A, B, and C: Estimated customer demand in units Selling price per unit Variable cost per unit Machine-hours per unit Product A Product B 700 600 $ 80 $ 65 $ 35 $ 26 2.5 3.0 Product C 800 $ $ 20 1.25 The company has only 1,700 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume a company makes only three products, A, B, and C: Estimated customer demand in units Selling price per unit Variable cost per unit Machine-hours per unit Multiple Choice $32,600 The company has only 1,700 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? $33,600 $34,600 Product A Product B Product C 700 600 $ 80 $ 65 $ 35 $ 26 2.5 3.0 $35,600 800 45 20 1.25 $ $
Transcribed Image Text:Assume a company makes only three products, A, B, and C: Estimated customer demand in units Selling price per unit Variable cost per unit Machine-hours per unit Multiple Choice $32,600 The company has only 1,700 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? $33,600 $34,600 Product A Product B Product C 700 600 $ 80 $ 65 $ 35 $ 26 2.5 3.0 $35,600 800 45 20 1.25 $ $
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