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dove298 dove298
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ABC Corporation produces three products, Standard, Deluxe and Superior, with the following characteristics:

​​StandardDeluxeSuperior
Selling price per unit$15$12$10
Variable cost per unit  10   8    7
Contribution margin per unit$  5$  4$  3
Machine hours per unit    2    2    2

The company has only 1,800 machine hours available each period. If demand exceeds the company's capacity, in what sequence should orders for the three products be filled to maximize the company's total contribution margin?

▸ Standard first, Superior second, Deluxe third

▸ Superior first, Standard second, Deluxe third

▸ Deluxe first, Standard second, Superior third

▸ Standard first, Deluxe second, Superior third
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Managerial Accounting

Managerial Accounting


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brendasantsbrendasants
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More solutions for this book are available here
Standard first, Deluxe second, Superior third

Standard = $5 ÷ 2 = $2.50 per machine hour; Deluxe = $4 ÷ 2 = $2.00 per machine hour; Superior = $3 ÷ 2 = $1.50 per machine hour;
Produce as: 1) Standard, 2) Deluxe, 3) Superior
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dove298 Author
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A month ago
This helped my grade so much Perfect
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this is exactly what I needed
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Thanks
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