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Company AA manufactures two products: P-S and P-F. The costs and revenues are as follows: P-S P-F Sales price $ 150 $ 88 Variable cost
Company AA manufactures two products: P-S and P-F. The costs and revenues are as follows:
P-S P-F
Sales price $ 150 $ 88
Variable cost per unit 80 42 Total demand for P-S is 14,000 units and for P-F is 9,000 units. Machine time is a scarce resource. During the year, 54,000 machine hours are available. P-S require 5 machine hours per unit, while P-F require 3 machine hours per unit.
How many units of P-S and P-F should Co.AA produce?
P-S P-F
A. 14,000 0
B. 8,307 4,154
C. 10,800 0
D. 5,400 9,000
Option A
Option B
Option C
Option D
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