ELA Inc. can sell all the units it can produce of either Product A or...
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Accounting
ELA Inc. can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution margin of $16 and takes two machine hours to make and Product B has a unit contribution margin of $30 and takes three machine hours to make. If there are 3,000 machine hours available to manufacture a product, income will be
a. the same if either product is made
b. $6000 less if product B is made
c. $6000 less if product A is made
d. $6000 more if product is made
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