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Elliot Company can sell all of its products A and Z that it can produce, but it has limited production capacity. It can produce 8

Elliot Company can sell all of its products A and Z that it can produce, but it has limited production capacity. It can produce 8 units of A per hour or 10 units of Z per hour, and it has 20,000 production hours available. Contribution margin per unit is $12 for A and $10 for Z. What is the most profitable sales mix for Elliot Company?

Multiple Choice

  • 84,000 units of A and 60,000 units of Z.
  • 48,000 units of A and 80,000 units of Z.
  • 60,000 units of A and 100,000 units of Z.
  • 120,000 units of A and 0 units of Z.
  • 0 units of A and 200,000 units of Z.

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