Seasmoke manufacturing has 12,100 labor hrs. available for producing A and B. Consider the following:                                                                      Product A               Product B required labor time per unit (hours)                 4                              3 max demand (units)                                         2500                   3000 Contribution margin per unit                             $16.00                $13.50 If the comapny followes proper managerial accounting practices in terms of setting a production schedule, how many units of Product A should it produce?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Seasmoke manufacturing has 12,100 labor hrs. available for producing A and B. Consider the following:

                                                                     Product A               Product B

required labor time per unit (hours)                 4                              3

max demand (units)                                         2500                   3000

Contribution margin per unit                             $16.00                $13.50

If the comapny followes proper managerial accounting practices in terms of setting a production schedule, how many units of Product A should it produce?

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