Explain a contribution margin per unit


Petco makes 2 products, dog collars and cat collars. Each passes through the cutting machine, which is the binding constraint. Dog collars take 6 minutes on the cutting machine and have a contribution margin per unit of $10. Cat collars take 4 minutes on the cutting machine and have a contribution margin of $8.Which product should be made if there is an unlimied demand for each?

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Accounting Basics: Explain a contribution margin per unit
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