8. OK Corporation makes three products (X,Y,&Z) with the following characteristics: The company has a capacity of 2,000 machine hours, but there is virtually unlimited demand for each product. In order to maximize total contribution margin, how many units of each product should the company produce? a. 1,000 units of X,125 units of Y, and 125 units of Z b. 0 units of X,0 units of Y, and 500 units of Z c. 0 units of X,500 units of Y, and 0 units of Z d. 2,000 units of X,0 units of Y, and 0 units of Z e. None of the above. The answer is 9. Kiley just inherited a 1958 Chevy Impala from her late Aunt Sally. Aunt Sally purchased the car 40 years ago for $3,000. Cybil is either going to sell the car for $10,000 or have it restored and then sell it for $27,000. The restoration will cost $16,000. Cybil would be financially better off by: a. $25,000 to have the vehicle restored b. 10,000 to have the vehicle restored c. 1,000 to have the vehicle restored d. (1,000) to have the vehicle restored e. None of the above. The answer is 10. Elly Industries is a multi-product company that currently manufactures 30,000 units of part MR24 each month for use in production of its products. The facilities now being used to produce part MR24 have a fixed monthly cost of $150,000 and a capacity to produce 35,000 units per month. If Elly were to buy part MR24 from an outside supplier, the facilities would be idle, but its fixed costs would continue at 40% of their present amount. The variable production costs of Part MR24 are \$11 per unit. If Elly industries is able to obtain part MR24 from an outside supplier at a purchase price of $12 per unit, the monthly financial advantage (disadvantage) of buying the part rather than making it would be: a. $(50,000) b. 50,000 c. (60,000) d. 60,000 e. None of the above. The answer is