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Bok Company has 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? A. Product A B. Product B C. Both Product A and B D. Either Product A or B

Bok Company has 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? A. Product A B. Product B C. Both Product A and B D. Either Product A or B

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Bok Company has 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?

A. Product A

B. Product B

C. Both Product A and B

D. Either Product A or B

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