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Ledbetter, Inc. has the following production and cost data for three of its products, Basic, ...

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Ledbetter, Inc. has the following production and cost data for three of its products, Basic, ...

Ledbetter, Inc. has the following production and cost data for three of its products, Basic, Standard and Deluxe:

Basic

Standard

Deluxe

Contribution margin per unit	$40	$50	$60
Machine hours needed per unit	2	5	4

A total of 8,000 hours is available each period for the production of the three products. The demand for both products is strong and Ledbetter has orders for 1,200 of Basic, 3,000 of Standard and 800 of Deluxe. Ignoring qualitative issues, how many of each product should Ledbetter produce?

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Managerial Accounting

Edition: 4^th

Author: Davis

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