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USE OF LIMITED RESOURCES-SINGLE CONSTRAINT.
Bush manufacturing has the following labor hours available for producing M and N: 26,000 - Total Direct labor hours available. Consider the following information:
M N
Required Labor per unit hours 3 2
Maximum demand in units 8,000 7,000
Contribution margin per unit 12 6
Problem 1: What is the optimal product mix (how many M and N should be produced?) Explain your answer and show computations.
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