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Snerd Products only has machine hours to produce and sell one of the following two products:

Machine Hours Contribution
Required Margin Per Unit
Product X 0.3 $6
Product Y 0.1 $5

The company has machine capacity of 900 hours. Snerd should produce

a. X because it has the highest contribution margin per machine hour

b. X because it uses fewer machine hours per unit

c. Y because it has the highest contribution margin per machine hour

d. Y because more units can be produced per machine hour than with X

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M963389

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