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Mays Company Can Sell All of Product a That It

Question 131

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Mays Company can sell all of product A that it produces but only 160,000 units of product Z.The company has limited production capacity.It can produce 6 units of A per hour or 10 units of Z per hour,and it has 30,000 production hours available.Contribution margin per unit is $12 for A and $10 for Z.What is the most profitable sales mix for this company?

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Because Product Z yields the higher con...

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