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Express Toys makes 2 products, both of which currently have very strong demand. Product P sells for $7.00 per unit, has a variable cost of
Express Toys makes 2 products, both of which currently have very strong demand. Product P sells for $7.00 per unit, has a variable cost of $3.00 per unit, and requires 2 minutes of processing time on Machine A. Product Q sells for $9.00 per unit, has variable cost of $2.00 per unit, and requires 10 minutes processing time on Machine A. If there are only 3,000 hours available on Machine A during the month, which product should be produced?
A) Product P
B) Neither product P nor Q
C) Equal quantities of each product
D) Product Q
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