Essay
Murphy's,Inc.has the following production and cost data for two of its products,Standard and Deluxe:
A total of 80,000 hours is available each period for the production of the two products.The demand for both products is strong and Murphy will be able to sell as many of either product as it can produce.Ignoring qualitative issues,which of the two products should Murphy produce?
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Standard $60/2 = $30 contribution margin...View Answer
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Correct Answer:
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