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Bush Manufacturing has the following labor hours available for producing M...

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Question

Accounting

Bush Manufacturing has the following labor hours available for producing M and N: 26,000 Total Direct labor hours available
Consider the following information:
M N
Required Labor per unit in hours 3 2
Maximum demand in units 8,000 7,000
Contribution Margin per unit 12 6
Required:
What is the optimal product mix(how many M and N should be produced)? Explain your answer and show computations.

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