Question
Particulars of four types of walking shoes produced are stated below: - Walking shoes Type A Type B Type C Type D Selling price per
Particulars of four types of walking shoes produced are stated below: -
Walking shoes | Type A | Type B | Type C | Type D |
Selling price per unit | £55 | £49 | £68 | £89 |
Contribution per unit | £28 | £21 | £36 | £32 |
Assume the fixed costs remain the same and there is same demand level for each type of walking shoes. For maximising profit, which type of walking shoes should be produced?
Select one:
a.Type D
b.Type B
c.Type C
d.Type A
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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