Assume a company makes only three products, A, B, and C: Product A Product B Product C Selling price per unit Variable cost per unit Machine-hours per unit $ 90 $ 35 $ 65 $ 25 $ 45 $ 20 1.50 1.5 The company does not have enough machine-hours available to satisfy demand for all of its products. Product A's contribution margin per unit of the constraining resource is closest to:
Assume a company makes only three products, A, B, and C: Product A Product B Product C Selling price per unit Variable cost per unit Machine-hours per unit $ 90 $ 35 $ 65 $ 25 $ 45 $ 20 1.50 1.5 The company does not have enough machine-hours available to satisfy demand for all of its products. Product A's contribution margin per unit of the constraining resource is closest to:
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:
Product A
Product B
Product C
Selling price per unit
Variable cost per unit
$ 90
$ 35
$ 65
$ 25
$ 45
$ 20
Machine-hours per unit
1.50
3
1.5
The company does not have enough machine-hours available to satisfy demand for all of its products. Product A's contribution margin per unit of the constraining resource is closest to:
Multiple Choice
$82.50.
$55.00.
$36.67.
$56.00.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3cadaab7-0242-405d-ab75-d1a15c225b30%2F1085ab02-6255-4e5d-b67d-cfb266849a1b%2F67w2fp4_processed.png&w=3840&q=75)
Transcribed Image Text:Assume a company makes only three products, A, B, and C:
Product A
Product B
Product C
Selling price per unit
Variable cost per unit
$ 90
$ 35
$ 65
$ 25
$ 45
$ 20
Machine-hours per unit
1.50
3
1.5
The company does not have enough machine-hours available to satisfy demand for all of its products. Product A's contribution margin per unit of the constraining resource is closest to:
Multiple Choice
$82.50.
$55.00.
$36.67.
$56.00.
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