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Hughes Company Manufactures and Sells Two Products

question 150

Essay

Hughes Company manufactures and sells two products. Relevant per unit data concerning each product are given below:
Instructions
(a) Compute the contribution margin per unit of the limited resource for each product.
(b) If 1,000 additional machine hours are available, which product should be manufactured?
(c) Prepare an analysis showing the total contribution margin if the additional hours are
(1) Divided equally among the products.
(2) Allocated entirely to the product identified in (b) above.


Definitions:

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A personality attribute that prioritizes internal emotions over external forms of excitement.

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A personality trait characterized by outgoingness, high energy, and positive affectivity, indicating a person’s tendency to seek stimulation and enjoy the company of others.

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