Question
Product A sells for $8 per unit. Its variable cost per unit is $5. Product B sells for $12 per unit. Its variable cost per
Product A sells for $8 per unit. Its variable cost per unit is $5. Product B sells for $12 per unit. Its variable cost per unit is $8. The plant capacity is 300,000 machine hours. 1 unit of A requires half an hour to produce. 1 unit of B requires one hour to produce. Which of the following will provide the best sales mix of Product A and Product B, assuming that the market limitation of Product A is 200,000 units?
Select one: a. 100,000 units of A, 200,000 units of B b. 200,000 units of A, 100,000 units of B c. 200,000 units of A, 200,000 units of B d. 150,000 units of A, 150,000 units of B
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