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Dills Corporation Has Provided the Following Data Concerning Its Two

question 76

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Dills Corporation has provided the following data concerning its two products--O24 and C50:  O24  C50  Monthly unit demand 1,5007,300 Selling price $425.00$130.00 Unit variable cost $297.50$78.00\begin{array}{lrr} & \text { O24 } &{\text { C50 }} \\\text { Monthly unit demand } & 1,500 & 7,300 \\\text { Selling price } & \$ 425.00 & \$ 130.00 \\\text { Unit variable cost } & \$ 297.50 & \$ 78.00\end{array} The total amount of the constrained resource available each month is 49,250 grams. Each unit of product O24 requires 17 grams of the constrained resource and each unit of product C50 requires 5 grams. What is the maximum contribution margin the company can earn per month?

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Licensing

Licensing is the process whereby a company allows another entity to use its intellectual property, brand, or product for a specified period in exchange for fees or royalties.

Royalty

A payment made to the owner of certain property rights for the use of those rights by others, common in publishing and patenting.

Strategic Alliance

A partnership between businesses, forged to leverage competitive advantages without sacrificing their individual autonomy.

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