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What is the total contribution margin

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Reference no: EM132871681

Problem - Two types of gears are produced: A and B. Gear A has a unit contribution margin of $200, and Gear B has a unit contribution margin of $400. Gear A uses 2 hours of grinding time, and Gear B uses 5 hours of grinding time. There are 200 hours of grinding time available per week. This is the only constraint. Determine the optimal mix. What is the total contribution margin?

Reference no: EM132871681

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