Correct answer--------Produce only product B
Working
Statement of ranking indicating which product to produced first and second | |||
Product | |||
Product A | Product B | ||
Sales price per unit | $ 75.00 | $ 60.00 | |
Variable cost per unit | $ 46.00 | $ 37.00 | |
Contribution margin per unit | $ 29.00 | $ 23.00 | |
Machine hours per unit | 4.00 | 3.00 | |
Contribution margin per machine hour | $ 7.25 | $ 7.67 | |
Ranking | II | I | II |
Produce | Second | First |
Product B has high contribution margin per limited resourses hence product B should be produces to get high returns.
Question 5 1 pts Miller Corp. produces 2 products with the following characteristics: Product A $75...
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