Question
Khan Ltd. can make three products (A, B, and C) using the same machines. Various estimates for next year have been made as follows:
Khan Ltd. can make three products (A, B, and C) using the same machines. Various estimates for next year have been made as follows: Product Selling price A B C $30 $39 $20 Variable material cost $15 $18 $10 Other variable cost $6 $10 $ 5 Production time (units/hrs) 2 3 1 Fixed costs for next year are expected to total $40,000. If the business has maximum machine capacity for next year of 10,000 hours, in which order of preference would the three products come? Oa. A; B; C. Ob. B; A; C. C. A; C; B. Od. C; B; A. O e. C; A; B.
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