Product Decisions Under Bottlenecked Operations Mill Metals Inc. has three grades of metal product, Type 5, Type 10, and Type 20. Financial data for the three grades are as follows: Type 5 Type 10 Type 20 $43,000 $(34,000) (8,000) $(42,000) $ 1,000 + 5,000 $ 0.20 Revenues Variable cost Fixed cost Total cost $49,000 $56,500 $(28,000) $(26,500) (8,000) (8,000) $(36,000) $(34,500) $13,000 $22,000 + 5,000 +5,000 $ 2.60 $4.40 Operating income Number of units Operating income per unit Mill's operations require all three grades to be melted in a furnace before being formed. The furnace runs 24 hours a day, 7 days a week, and is a production bottleneck. The furnace hours required per unit of each product are as follows: 6 hours 6 hours 12 hours Type 5: Type 10: Type 20: The Marketing Department is considering a new marketing and sales campaign. Determining the unit contribution margin per furnace hour will assist in making your decision. Round the unit contribution margin to two decimal places.

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