Assuming that the market limitation of product a is 152000


Next door, ABC business, Product A sells for $10 per unit. Its variable cost per unit is $2. Product B sells for $22 per unit. Its variable cost per unit is $16. The plant capacity is 310,000 machine hours. Both products consumes 2 machine hours/ unit, each. Which of the following will provide the best sales mix of Product A and Product B, assuming that the market limitation of Product A is 152,000 units? What will be the overall contribution margin at that optimal level?

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Financial Management: Assuming that the market limitation of product a is 152000
Reference No:- TGS02775281

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