A company can sell all the units it can produce of either Product A or...
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Accounting
A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution margin of $ 12 and takes two machine hours to make and Product B has a unit contribution margin of $ 24.0 and takes three machine hours to make. If there are 5000 machine hours available to manufacture a product, income will be
$ 10000 less if Product B is made.
$ 10000 less if Product A is made.
the same if either product is made.
$ 10000 more if Product A is made.
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