Which should the limited number of machine hours be used

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Question 1: ABC Company has a limited number of machine hours that it can use for manufacturing two products, A and B. Each product has a selling price of P160 per unit, but product A has 40% contribution margin and Product B has 70% contribution margin. One unit of B takes twice as many machine hours to make as a unit of A. Assume either product can be sold in whatever quantity produced, which product(s) should the limited number of machine hours be used for

Reference no: EM132566652

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