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Question(s) / Instruction(s):

A company can produce and sell only one of the following two products:

                Machine Hours Required             Contribution Margin per Unit

Product 1             3                                              $30

Product 2             2                                              $25

If the company has machine capacity of 2,000 hours, what is the total contribution margin of the product it should produce to maximize net income?

A)           $20,000

B)            $24,000

C)            $25,000

D)           $16,000

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