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use for Ing two products, X and Y. Each product has a selling price of P160 per unit but product X has 40% contribution margin and product Y has a 70% contribution margin. One unit of Y takes twice as many machine hours to make as a unit of X. Assume either product can be sold in whatever quantity is produced. Which product or products should the limited number of machine hours be used for?

use for Ing two products, X and Y. Each product has a selling price of P160 per unit but product X has 40% contribution margin and product Y has a 70% contribution margin. One unit of Y takes twice as many machine hours to make as a unit of X. Assume either product can be sold in whatever quantity is produced. Which product or products should the limited number of machine hours be used for?

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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Aileen Co.

Aileen Co., has a limited number of machine hours that it can use for manufacturing two products, X and Y. Each product has a selling price of P160 per unit but product X has 40% contribution margin and product Y has a 70% contribution margin. One unit of Y takes twice as many machine hours to make as a unit of X. Assume either product can be sold in whatever quantity is produced. Which product or products should the limited number of machine hours be used for? Both X and Y Either X or Y
Transcribed Image Text:Aileen Co., has a limited number of machine hours that it can use for manufacturing two products, X and Y. Each product has a selling price of P160 per unit but product X has 40% contribution margin and product Y has a 70% contribution margin. One unit of Y takes twice as many machine hours to make as a unit of X. Assume either product can be sold in whatever quantity is produced. Which product or products should the limited number of machine hours be used for? Both X and Y Either X or Y
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