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Gerber Inc has 5,200 machine hours available each month. The following information on the company's three products is available:
Product 1
Product 2
Product 3
Contribution margin per unit
$45.00
$54.00
$22.50
Machine hours per unit
3
2
1
Sales demand in units
900
1,000
3,000
Requirements:
What production schedule will maximize the company's profits?
Product 1:
Product 2:
Product 3:
What will be the maximum possible contribution margin?
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