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Category > Accounting Posted 26 May 2017 My Price 7.00

Product X has a contribution margin of $26 and requires 4 hours of machine time

(LO 4) 10. MEM manufactures two products. Product X has a contribution margin of $26 and requires 4 hours of machine time. Product Y has a contribution  margin of $14 and requires 2 hours of machine time. Assum- ing that machine time is limited to 3,000 hours, how should it allocate the machine time to maximize its income?

(a)   Use 1,500 hours to produce X and 1,500 hours to produce Y.

(b)   Use 2,250 hours to produce X and 750 hours to produce Y.

(c)   Use 3,000 hours to produce only X.

(d)   Use 3,000 hours to produce only Y.

Answers

Alpha Geek
(8)
Status NEW Posted 26 May 2017 01:05 PM My Price 7.00

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Attachments

file 1495805520-1356305_1_636313077882672722_Contribution-margin-per-machine-hour.xlsx preview (174 words )
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