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Product s has a contribution margin of 150 per unit and

Product S has a contribution margin of $150 per unit and requires three hours of machine time. Product T requires four hours of machine time and provides $200 of contribution margin per unit.

Required:

If the capacity of machine time is limited to 600 hours and only one product can be produced, what is the maximum amount of contribution that could be generated?

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Accounting Basics: Product s has a contribution margin of 150 per unit and

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Accounting Basics: Product s has a contribution margin of 150 per unit and

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