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A company has 10,000 hours of capacity and manufactures two products. Product 1 ...
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A company has 10,000 hours of capacity and manufactures two products. Product 1 takes 2 hours per unit. Product 2 takes 3 hours per unit. The contribution margin per unit for Product 1 is $5. The contribution margin per unit for Product 2 is $6. Neither product has enough demand to use all of the plant capacity, but the demand for both products exceeds the plant capacity. Which product or products should be manufactured?
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