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Vaughn Industries manufactures and sells three different models of wet-dry shop vacuum cleaners. Although the shop vacs vary in terms of quality and features, all are good sellers. Vaughn is currently operating at full capacity with limited machine time. Sales and production information relevant to each model is as follows:

	Product
	Economy		Standard		Deluxe
Selling price	$26.50		$54.00		$89.20
Variable costs and expenses	$11.50		$18.00		$40.00
Machine hours required	0.50		0.80		1.60

Ignoring the machine time constraint, which single product should Vaughn Industries produce?

Vaughn Industries should produce select a product Deluxe modelEconomy modelStandard model.

What is the contribution margin per unit of limited resource for each product? (Round answers to 2 decimal places, e.g. 15.75.)

Model		Contribution Margin
Economy		$enter a dollar amount per machine hour	per machine hour
Standard		$enter a dollar amount per machine hour	per machine hour
Deluxe		$enter a dollar amount per machine hour	per machine hour

If it could obtain additional machine time, how should the company use the additional time?

Additional machine time should be used to produce the select a product Economy modelStandard modelDeluxe model.

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