10-

Lit Furniture manufactures a small table and a large table. The small table sells for $900, has variable costs of $750 per table, and takes 7.5 labor hours to manufacture. The large table sells for $1,500, has variable costs of $900, and takes 15 direct labor hours to manufacture. If the company has no sales limitations on either product, the company should:

Select one:

make and sell as many of the small tables as possible to maximize operating income.

make and sell as many of either the small or the large tables to maximize operating income.

make and sell as many of the large tables as possible to maximize operating income.

the size of market demands should not affect the company's sales mix.

make and sell equal amounts of both tables as possible to maximize operating income.

11-

Bryan Company manufactures two products: Juice makers and Coffee makers. The following data are available:

	Juice makers	Coffee makers
Sale price	$80	$150
Variable costs	$40	$70
Units produced per machine hour	0.17 units	0.25 units
Machine hours required per unit	6 hour	4 hour

Bryan's production capacity is 18,000 machine hours and can sell as many units of either type as it can produce. What product and how many units should the company produce to maximize profits?

Select one:

7,200 Juice maker and 2,400 Coffee makers.

2,400 Coffee makers.

4,500 Coffee makers.

3,000 Juice makers and 4,500 Coffee makers.

3,000 Juice makers.

12-

Tareq Company incurred fixed costs of $300,000. Total costs, both fixed and variable, are $750,000 when 50,000 units are produced. It sold 30,000 units during the year. Calculate the variable cost per unit.

Select one:

$9

$15

$16

$12

$3

$10