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Posted: November 4th, 2022
Contribution margin per unit discussion
Question description
Ring
Company can sell a maximum of 1,000 units of each size of table. Machine hour
capacity is 8,000 hours per year.
Required:
a. Which table has the higher contribution margin per unit?
b. Which table has the higher contribution margin per hour?
c. How many tables of each size should be produced to maximize income, and what
is the maximum income?
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