CABBAGE Company makes three products with the following characteristics: Product Product Product V JK JIN Selling price per unit P10 P15 P20 Variable Cost per unit P6 P10 P10 Machine hours per unit 2 4 10 The company has a capacity of 2,000 machine hours, but there is virtually limited demand for product V of 350 units and product JIN of 550 units. In order to maximize total contribution margin, how many units of each product should the company product for product JK?
CABBAGE Company makes three products with the following characteristics: Product Product Product V JK JIN Selling price per unit P10 P15 P20 Variable Cost per unit P6 P10 P10 Machine hours per unit 2 4 10 The company has a capacity of 2,000 machine hours, but there is virtually limited demand for product V of 350 units and product JIN of 550 units. In order to maximize total contribution margin, how many units of each product should the company product for product JK?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
CABBAGE Company makes three products with the following characteristics:
|
Product |
Product |
Product |
|
V |
JK |
JIN |
Selling price per unit |
P10 |
P15 |
P20 |
Variable Cost per unit |
P6 |
P10 |
P10 |
Machine hours per unit |
2 |
4 |
10 |
The company has a capacity of 2,000 machine hours, but there is virtually limited demand for product V of 350 units and product JIN of 550 units. In order to maximize total contribution margin, how many units of each product should the company product for product JK?
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