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Kent. has a limited number of machine hours that it can use for manufacturing two products, A and B.
S. Kent. Co. has a limited number of machine hours that it can use for manufacturing two products, A and B. Each product has a selling price of P160 per unit but product A has 40 percent contribution margin and product B has a 70 percent contribution margin. One unit of B takes twice as many machine hours to make as a unit of A. Assume either product can be sold in whatever quantity is produced, which product or products should be limited number of machine hours be used for?