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Product A Product B Product C elling price per unit P30 100% P20 100% P15 100% ariable costs per unit . 18 60% 15 75% 40% Fontribution margin per unit P12 40% P 5 25% P 9 60%

Product A Product B Product C elling price per unit P30 100% P20 100% P15 100% ariable costs per unit . 18 60% 15 75% 40% Fontribution margin per unit P12 40% P 5 25% P 9 60%

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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A particular machine is a bottleneck. On that machine, 3 machine hours are required to produce each unit of Product A, 1 hour is required to produce each unit of Product B, and 2 hours are required to produce each unit of Product C.

In which order should it produce its products?

C, A B
The order of production doesn't matter.
A, C, B
B, C, A
Stars Company produces three products, with costs and selling prices as follows: Product A Product B Product C Selling price per unit . P30 100% P20 100% P15 100% Variable costs per unit .. 18 60% 15 75% 40% Contribution margin per unit .. P12 40% P 5 25% P 9 60%
Transcribed Image Text:Stars Company produces three products, with costs and selling prices as follows: Product A Product B Product C Selling price per unit . P30 100% P20 100% P15 100% Variable costs per unit .. 18 60% 15 75% 40% Contribution margin per unit .. P12 40% P 5 25% P 9 60%
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