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i need help on this one (c) Fixed costs (d) Avoidable costs 17 AY0,000 Use the following information to answer Questions (4) and (5) fo,00
i need help on this one
(c) Fixed costs (d) Avoidable costs 17 AY0,000 Use the following information to answer Questions (4) and (5) fo,00 A company produces two products, A and B. The company processes both products through the same machinery. Product A requires 5 machine hours per unit and Product B requires 3 hours of machine time per unit. The company's productive capacity is 240,000 machine hours. Product A sells for $16 per unit and its variable materials and labor cost is $6 per unit. Product B sells for $12 per unit and its variable materials and labor cost is $5 per unit. The company can sell as many units of either product as it can produce. (4) The company should: (a) produce both products in the following proportion: A-62.5%, B-37.5% (b) produce both products in the following proportion: A-40% , B-60% (c) produce equal amounts of A and B produce only Product B (e) produce only Product A (5) Assuming the company allocates all of its 240,000 hours of machine time to its highest and best use, the largest contribution margin the company will generate is: (a) $480,000 (b) $510,000 (c) $520,000 (d) $528,000 s560,000 Step by Step Solution
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