Gleason Co. has two products, a frozen dessert and ready-to-bake breakfast rolls, ready for introduction. However, plant capacity is limited, and only one product can be introduced at present. Therefore, Gleason has conducted a market study at a cost of $26,000, to determine which product will be more profitable. The results of the study follow. Sales of Desserts at $1.80/unit Volume Probability 30 250,000 - 40 300,000 350,000 400,000 20 10 Ingredients per unit Direct labor per unit Variable overhead per unit Sales of Rolls at $1.20/unit Production tooling* Advertising Volume Probability 200,000 20 250,000 50 20 10 The costs associated with the two products have been estimated by Gleason's cost accounting department and are as follows: Dessert $ 40 35 40 300,000 350,000 Rolls $ O A. 275,000 units. OB. 260,000 units O C. Some amount other than those given. OD. 125 000 units 25 30 20 48,000 25,000 30,000 20,000 *Gleason treats production tooling as a current operating expense rather than capitalizing it as a fixed asset. According to Gleason's market study, the expected value of the sales volume of the breakfast rolls is

Gleason Co. has two products, a frozen dessert and ready-to-bake breakfast rolls, ready for introduction. However, plant capacity is limited, and only one product can be introduced at present Therefore, Gleason has conducted a market study at a cost of $26,000, to determine which product will be more profitable. The results of the study follow. The costs associated with the two products have been estimated by Gleason's cost accounting department and are as follows: *Gleason treats production tooling as a current operating expense rather than capitalizing it as a fixed asset. According to Gleason's market study, the expected value of the sales volume of the breakfast rolls is A. 275,000 units. B. 260,000 units C. Some amount other than those given. D. 125,000 units Fact Pattern: Gleason Co. has two products, a frozen dessert and ready-to-bake breakfast rolls, ready for introduction. However, plant capacity is limited, and only one product can be introduced at present. Therefore, Gleason has conducted a market study at a cost of $26,000, to determine which product will be more profitable. The results of the study follow. The costs associated with the two products have been estimated by Gleason's cost accounting department and are as follows. *Gleason treats production tooling as a current operating expense rather than capitalizing it as a fixed asset. According to Gleason's market study, the expected value of the sales. volume of the breakfast rolls is A. 275,000 units B. 260,000 units. C. Some amount other than those given: D. 125,000 units