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Wubben, Inc. manufactures two products. It currently has 2,000 hours of direct labor and 1,000 hours...

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Accounting

Wubben, Inc. manufactures two products. It currently has 2,000hours of direct labor and 1,000 hours of machine time available permonth. The table below lists the contribution margin, labor andmachine time requirements, and demand for each product.

Product A

Product B

Unit contribution margin

$15

$12

Demand

1,000 units

2,000 units

Labor time per unit

0.75 hours

0.50 hrs

Machine time per unit

1 hour

0.50 hrs

(T or F ) If Wubben maximized profit, then the firm willmanufacture 1,000 units of Product 1 and 2,000 units of Product Bper month.

Answer & Explanation Solved by verified expert
4.4 Ratings (623 Votes)
Particulars Demand labour Time Per Unit Total Labour Time Machine Time Per Unit Total Product A 1000 075 750 100 1000 Product B    See Answer
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