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Omega Company manufactures two products: Product A and Product B. The following information is available: Product A: Selling price per unit: SAR 50 Variable cost

Omega Company manufactures two products: Product A and Product B. The following information is available:

  • Product A:
    • Selling price per unit: SAR 50
    • Variable cost per unit: SAR 30
    • Fixed costs: SAR 20,000
  • Product B:
    • Selling price per unit: SAR 80
    • Variable cost per unit: SAR 50
    • Fixed costs: SAR 25,000 The company has a production capacity of 1,000 units. Determine which product(s) Omega Company should produce to maximize profits.

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