MECHANICS OF MATERIALS REVIEW - Missouri S&T
Management should choose the product mix that maximizes operating income for a given production capacity (the scarce resource in this situation). In this case, Model 14 will yield a $9.50 contribution to fixed costs per machine hour, and Model 9 will yield $9.00: Model 9 Model 14 Selling price . Variable costs per unit (total cost – FMOH) ................
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