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I need help with three finding maximum contribution margin

I need help with three finding maximum contribution margin-example-1
User Ithcy
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Answer:The answer is product A 29,000 product B 29,800 product C 41,000 The company should accept Product C first, followed by B and A last, The maximum contribution margin is 41,000

Step-by-step explanation:

Product A. Product B. Product C

$ $ $

Sales(80×800) 64,000. (56×800) 44,800. (70×800) 56,000

Less: variable cost (3×5000) 15,000. 15,000. 15,000

Contribution margin. 29,000. 29,800. 41,000

1. The contribution margin for product A is 29,000, product B is 29,800, product C is 41,000

2. The company should accept C first with highest contribution margin, B second and A th if

3 The maximum contribution margin is $41,000

User Mbdavid
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