Excel Memory Company can sell all units of computer memory X and Y that it can produce, but it has limited production capacity. It can produce two units of X per hour or three units of Y per hour, and it has 4,000 production hours available. Contribution margin is $5 for product X and $4 for product Y. Calculate contribution margin per production hour.
|
Product X |
Product Y |
| Contribution margin per unit |
$5.00 |
$4.00 |
| Units produced per hour |
|
|
| Contribution margin per production hour |
|
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