Bonita Industries's contribution margin is $27.50 per unit for Product A and $30 for Product B. Product Arequires 2 machine hours and Product B requires 4 machine hours. How much is the contribution margin per unit of limited resource for each product? O $5.00 $13.75 $5.00 $13.75 B $9.17 $9.17 $7.50 $7.50

Bonita Industries's contribution margin is $27.50 per unit for Product A and $30 for Product B. Product Arequires 2 machine hours and Product B requires 4 machine hours. How much is the contribution margin per unit of limited resource for each product? O $5.00 $13.75 $5.00 $13.75 B $9.17 $9.17 $7.50 $7.50

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Description: Please do not give solution in image format thanku Bonita Industries's contribution margin is $27.50 per unit for Product A and $30 for Product B. Product Arequires 2 machine hoursand Product B requires 4 machine hours. How much is the contribution m

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5MC: A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the...

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Patz Company produces two types of machine parts: Part A and Part B, with unit contribution margins of 300 and 600, respectively. Assume initially that Patz can sell all that is produced of either component. Part A requires two hours of assembly, and B requires five hours of assembly. The firm has 300 assembly hours per week. Required: 1. Express the objective of maximizing the total contribution margin subject to the assembly-hour constraint. 2. Identify the optimal amount that should be produced of each machine part and the total contribution margin associated with this mix. 3. What if market conditions are such that Patz can sell at most 75 units of Part A and 60 units of Part B? Express the objective function with its associated constraints for this case and identify the optimal mix and its associated total contribution margin.
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