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 $44 and unit variable cost $24 and takes 2 machine hours to make; Product B has a unit selling price of $50 and unit variable cost $20 and takes 4 machine hours to make. If there are 3,000 machine hours available to manufacture a product. Total fixed cost $20,000.
Match between the question and proper answer.
Total Contribution margin if the company decided to produce Product B | Answer 1Choose...$17,500$30,000Product B$10,000Product A$10$7.5$22,500$9 |
Total Contribution margin if the company decided to produce Product A | Answer 2Choose...$17,500$30,000Product B$10,000Product A$10$7.5$22,500$9 |
The contribution margin per machine hour for Product A is | Answer 3Choose...$17,500$30,000Product B$10,000Product A$10$7.5$22,500$9 |
The contribution margin per machine hour for Product B is | Answer 4Choose...$17,500$30,000Product B$10,000Product A$10$7.5$22,500$9 |
Which product should be produced to maximize a profit |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started