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Favata Corporation manufactures two products, AA and CC. The following information was available: AA CC Selling price per unit $37 $26 Variable cost per unit

Favata Corporation manufactures two products, AA and CC. The following information was available:

AA

CC

Selling price per unit

$37

$26

Variable cost per unit

32

22

Total fixed costs

$18,000

If Favata Corporation could produce and sell either 10,000 units of AA or 5,000 units of CC at full capacity, it should produce and sell _________.

A. 10,000 units of AA and none of CC

B. 4,000 units of AA and 5,000 units of CC

C. 5,000 units of CC and none of AA

D. 3,000 units of CC and 6,000 units of AA

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