Question
A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit
A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit selling price of $27 and unit variable cost $13 and takes one labor hour to make; Product B has a unit selling price of $50 and unit variable cost $15 and takes 3.5 labor hours to make. If there are 5,000 labor hours available to manufacture a product. Total fixed cost $20,000.
Match between the question and proper answer.
The contribution margin per labor hour for Product A is | Answer 1Choose...Product A$14Product B$30,000$45,000$70,000$7.5$50,000$10 |
Total Contribution margin if the company decided to produce Product B | Answer 2Choose...Product A$14Product B$30,000$45,000$70,000$7.5$50,000$10 |
Which product should be produced to maximize a profit | Answer 3Choose...Product A$14Product B$30,000$45,000$70,000$7.5$50,000$10 |
The contribution margin per labor hour for Product B is | Answer 4Choose...Product A$14Product B$30,000$45,000$70,000$7.5$50,000$10 |
Total Contribution margin if the company decided to produce Product A | Answer 5 |
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