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A Company Produces Three Different Products That All Require Processing

question 100

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A company produces three different products that all require processing on the same machines.There are only 27,000 machine hours available in each year.Production information for each product is:
ABC Sales price per unit $20.00$38.00$35.00 Variable costs per unit $12.00$26.00$17.00 Machine hours necessary to produce one 2.54.04.50\begin{array}{lrrr}& \underline { A }& \underline { B }& \underline { C }\\\text { Sales price per unit } & \$ 20.00 & \$ 38.00 & \$ 35.00 \\\text { Variable costs per unit } & \$ 12.00 & \$ 26.00 & \$ 17.00 \\\text { Machine hours necessary to produce one } & 2.5 & 4.0 & 4.50\end{array} Required:
a.Determine the preferred sales mix if there are no market constraints on any of the products.
b.Determine the preferred sales mix if the demand is limited to 5,000 units for each product.
c.Determine the preferred sales mix if the demand is limited to 3,000 units for each product.

Recognize and apply effective communication strategies for interacting with multicultural audiences.
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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion in a set of numerical data, indicating how spread out the data points are from the mean.

Souvenirs

Items purchased or acquired to serve as a reminder of a particular place, event, or experience, often during travels.

Future Sales

Anticipated or projected revenue from the sale of products or services in upcoming periods.

Margin Lost

The reduction in the potential profit margin due to factors such as discounts, errors, or inefficiencies.

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