CABBAGE Company makes three products with the following characteristics:   Product Product Product   V JK JIN Selling price per unit P10 P15 P20 Variable Cost per unit P6 P10 P10 Machine hours per unit 2 4 10 The company has a capacity of 2,000 machine hours, but there is virtually limited demand for product V of 350 units and product JIN of 550 units. In order to maximize total contribution margin, how many units of each product should the company product for product JK?

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter20: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4CMA: Eagle Brand Inc. produces two products as follows: Eagle Brand has 1,000 lbs. of raw materials that...
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CABBAGE Company makes three products with the following characteristics:

 

Product

Product

Product

 

V

JK

JIN

Selling price per unit

P10

P15

P20

Variable Cost per unit

P6

P10

P10

Machine hours per unit

2

4

10

The company has a capacity of 2,000 machine hours, but there is virtually limited demand for product V of 350 units and product JIN of 550 units. In order to maximize total contribution margin, how many units of each product should the company product for product JK?

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