Company productive capacity is limited

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Product A requires 3 machine hours per unit to be produced, Product B requires 5 machine hours per unit, and the company’s productive capacity is limited to 40,000 machine hours. Product A sells for $15 per unit and has variable costs of $6 per unit. Product B sells for $12 per unit and has variable costs of $2 per unit. Assuming the company can sell as many units of either product as it produces, the company should: A. Produce only Product A. B. Produce only Product B. C. Produce equal amounts of A and B. D. Produce A and B in the ratio of 60% A to 40% B

Reference no: EM131219406

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