Kayak Company has a limited number of machine hours available to make its products A, B, and C. Data for each are as follows:
Kayak Company has a limited number of machine hours available to make its products A, B, and C. Data for each are as follows:
Product A
Product B
Product C
Selling price per unit
$750
$400
$650
Contribution margin per unit
400
125
150
Contribution margin per machine hour
100
125
75
It should give priority to producing
Product B.
Both Products A and C.
Product C.
Product A.
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