Wildhorse Corporation manufactures two products with the following characteristics. Unit Contribution Margin Machine Hours Required for Production Product 1 $63 0.15 hours Product 2 $50 0.10 hours If Wildhorse's machine hours are limited to 2,000 per month, determine which product it should produce. Product 1 Contribution margin per unit of limited resource $ Wildhorse Corporation should produce $ Product 2
Wildhorse Corporation manufactures two products with the following characteristics. Unit Contribution Margin Machine Hours Required for Production Product 1 $63 0.15 hours Product 2 $50 0.10 hours If Wildhorse's machine hours are limited to 2,000 per month, determine which product it should produce. Product 1 Contribution margin per unit of limited resource $ Wildhorse Corporation should produce $ Product 2
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Wildhorse Corporation manufactures two products with the following characteristics.
Unit Contribution
Margin
Machine Hours
Required for Production
Product 1
$63
0.15 hours
Product 2
$50
0.10 hours
If Wildhorse's machine hours are limited to 2,000 per month, determine which product it should produce.
Product 1
Contribution margin per unit of limited resource
$
Wildhorse Corporation should produce
$
Product 2
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