Question
Bellissima Make-up Artist Ltd makes two products: Lipstick and compact powder. Operating information from the previous year is: Lipstick Compact powder Sales price per unit
Bellissima Make-up Artist Ltd makes two products: Lipstick and compact powder. Operating information from the previous year is: Lipstick Compact powder Sales price per unit $7.00 $10.00 Variable cost per unit $4.00 $8.00 Units produced and sold 5,000 4,000 Machine hours used 5,000 2,000 Fixed costs of $20,000 per year are presently allocated evenly between both products. If the product mix were to change, total fixed costs would remain the same. Assuming everything produced for either product can be sold, how many units of each product should be produced and sold if machine hours are limited to 10,000? Select one: Lipstick 5,000 units Compact Powder 10,000 units Lipstick 8,000 units Compact Powder 4,000 units Lipstick 10,000 units Compact Powder 0 unit Lipstick 0 unit Compact Powder 20,000 units
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