Question
25) A company sells two products with information as follows: A B Sales price per unit $12 $28 Variable cost per unit $10 $12 The
25) A company sells two products with information as follows:
A | B | |
Sales price per unit | $12 | $28 |
Variable cost per unit | $10 | $12 |
The products are machine made. Four units of product A can be made with one machine hour and two units of product B can be made with one machine hour. The company has a maximum of 5,000 machine hours available per month. The company can sell up to 18,000 units of product A per month, and up to 3,000 units of product B for the month. What is the optimum product mix to maximize the company's operating income?
A.
14,000
units of A and
3,000
units of B
B.
28,000
units of A and zero units of B
C.
1,500
units of A and
76,000
units of B
D.zero units of A and
3,000
units of B
26) The phone bill for a corporation consists of both fixed and variable costs. Refer to the fourmonth data below and apply the highlow method to answer the question.
Minutes | Total Bill | |
January | 470 | $5,000 |
February | 220 | $2,685 |
March | 180 | $2,645 |
April | 310 | $2,810 |
If the company uses 360 minutes in May, how much will the total bill be? (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)
A.
$1,184
B.
$8,817
C.
$2,923
D.
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