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What is produce in order to maximize contribution margin

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A manufacturer has a limited supply of 1,200 lbs of raw materials that can be used to produce either Product X or Y. details of which are given below.
                                                        Product X                            Product Y

Selling price per unit                   $200                                  $250

Variable costs per unit                  $176                                  $200

Raw materials used per unit        8 lbs                                      10 lbs

Question 1: Which one of the following should the manufacturer produce in order to maximize contribution margin?

A. 100 units of Product X and 80 units of Product Y.

B. 150 units of Product X.

C. 100 units of Product X and 40 units of Product Y.

D. 120 units of Product Y.

Reference no: EM132477554

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