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47. SleepWell produces two types of pillows, a standard and a premium version. Sales price for the standard version is 10 with variable costs of
47. SleepWell produces two types of pillows, a standard and a premium version. Sales price for the standard version is 10 with variable costs of 6 per unit. The premium pillow sells for 30 with variable costs of 15 per unit. The standard version requires one machine hour, while the premium version requires three machine hours. Total fixed costs are 20 000 and the yearly machine hour capacity is 30 000 hours. Assuming that there are no selling constraints, what is the optimal product mix? A) O standard pillows and 10,000 premium pillows B) 15,000 standard pillows and 15,000 premium pillows C) 30,000 standard pillows and 0 premium pillows D) O standard pillows and 30,000 premium pillows 48. Couch sells home furnishings, such as furniture, lamps and lighting and wall art. The company is considering whether to discontinue wall art because of slowing sales. Wall art accounted for total sales of 3,900,000 during the most recent year. Cost of goods sold related to wall art included variable costs of 3,495,000 and fixed costs of 53,500. Operating expenses related to wall art included variable expenses of 320,000 and fixed expenses of 47,800. None of the fixed costs or fixed expenses will be eliminated if wall art is discontinued. If the company's current total income from operations is 310,000, what will the company's total income from operations be if wall art is discontinued? A) 225,000 B) 85,000 C) 310,000 D) 320,000
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