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Question - The following are production and cost data for two products, X and Y.
Product X Product Y
Contribution margin per unit $450 $280
Machine set-ups needed per unit 25 14
The company can only perform 14,000 set-ups each period yet there is unlimited demand for each product. What is the maximum contribution margin for the year?
A) $450,000
B) $252,000
C) $156,800
D) $280,000
In 2016, X Company's unit-based profit function was $85.90X - $741,000. How many units must X Company sell in 2017 in order to earn $32,000
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