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The Tippett Company Manufactures Two Products, 12-07 and 19-01

Question 46

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The Tippett Company manufactures two products, 12-07 and 19-01. Contribution margin per unit is determined as follows: The Tippett Company manufactures two products, 12-07 and 19-01. Contribution margin per unit is determined as follows: Total demand for 12-07 is 5,000 units and for 19-01 is 10,000 units. Direct labour is a scarce resource. 40,000 direct labour hours are available during the year. Product 12-07 requires 5 direct labour hours per unit while product 19-01 requires 2 labour hours per unit. How many units of 12-07 and 19-01 should the Royer Company produce? Total demand for 12-07 is 5,000 units and for 19-01 is 10,000 units.
Direct labour is a scarce resource. 40,000 direct labour hours are available during the year. Product 12-07 requires 5 direct labour hours per unit while product 19-01 requires 2 labour hours per unit.
How many units of 12-07 and 19-01 should the Royer Company produce?

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