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EXHIBITS: Forecasted Revenue and Cost Product A Units Produced Marginal Revenue Marginal Cost 3156.600 $143,000 313-15 400 $130,300 S12? ?'00 $123,300 $09,000 $130,300 Product B
EXHIBITS:
Forecasted Revenue and Cost Product A Units Produced Marginal Revenue Marginal Cost 3156.600 $143,000 313-15 400 $130,300 S12? ?'00 $123,300 $09,000 $130,300 Product B Units Produced Marginal Revenue Marginal Cost $100,000 $132,000 $1?0.200 $109,300 8158.400 $150,400 $130,000 $126,400 Email X To: Kristina Montes, Accounting Associate From: Jenna Brown, Accounting Manager RE: Product Mix Hi Kristina, The CFO has requested that we help determine the profit-maximizing product mix of products A and B. Due to capacity constraints, we can only produce a maximum of 4 units. I will send you the forecasted marginal revenues and marginal costs for both products. Please help determine the product mix. Let me know if you have any questions. Thanks, Jenna BrownBased on the information provided in the exhibits, enter the appropriate amounts in the associated cells for the combination of units produced in columns A and B. Enter the marginal revenue for the product mix {total revenue} in column C and the marginal (total) cost in column D. It the amount is zero, enter a zero {U}. Enter all amounts as positive whole numbers. A B C D it Product A units Product B units Total revenue Total cost produced PdeUCEd 123 133' 2 4 U 3 3 1 133 4 2 2 123 5 1 3 6 i] 4 rss 133 Task 2: Based on the above calculations; enter the number of units of products a and B that should be produced to maximize prots. 1. Units of Product is produced 123 2. Units of Product B produced 123Step by Step Solution
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