Contribution margin per machine hour:

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 3CE: Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins...
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Ptarmigan Company produces two products. Product A has a contribution margin of $44.00 and requires 8
machine hours. Product B has a contribution margin of $67.20 and requires 12 machine hours. Determine
the most profitable product assuming the machine hours are the constraint. If required, round your
answers to two decimal places.
Contribution margin per machine hour:
Product A $
Product B $
Product
is the most profitable.
Transcribed Image Text:Ptarmigan Company produces two products. Product A has a contribution margin of $44.00 and requires 8 machine hours. Product B has a contribution margin of $67.20 and requires 12 machine hours. Determine the most profitable product assuming the machine hours are the constraint. If required, round your answers to two decimal places. Contribution margin per machine hour: Product A $ Product B $ Product is the most profitable.
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