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Product A requires 5 machine hours per unit to be produced, Product B requires only 3 machine hours per unit and the company's productive capacity
Product A requires 5 machine hours per unit to be produced, Product B requires only 3 machine hours per unit and the company's productive capacity is limited to 240,000 machine hours. Product A sells for $16 per unit and has variable costs of \$6 per unit. Product B sells for \$12 per unit and has variable costs of \$5 per unit. Assuming the company can sell as many units of either product as it produces, the company should: Produce only Product A. Produce A and B in the ratio of 62.5%A to 37.5%B. Produce only Product B. None of the above answers is correct Produce equal amounts of A and B
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