3) A company has 10,000 hours of capacity and manufactures two products. Product 1 takes...
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Accounting
3) 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. The demand for either product exceeds the factory capacity. Which product or products should be manufactured?
A) 3,000 units of Product 1 and 2,000 units of Product 2
B) 2,500 units of Product 1 and 3,333 units of Product 2
C) make 5,000 units of Product 1 and 0 units of Product 2 this is the correct answer, please explain why
D) make 3,333 units of Product 2 and 0 units of Product 1
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