How much contribution margin would the company expect

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Question - Bush Manufacturing has 31,000 labor hours available for producing M and N. Consider the following information:

 

Product M

Product N

Required labor time per unit (hours)

2

3

Maximum demand (units)

6,500

8,000

Contribution margin per unit

$5.00

$5.70

If Bush follows proper managerial accounting practices in terms of setting a production schedule, how much contribution margin would the company expect to generate?

Reference no: EM132776134

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