Answered step by step
Verified Expert Solution
Question
1 Approved Answer
QUESTION 21 Watson Corporation manufactures two products, Simple and complex. The following annual information was gathered: Selling price per unit Variable cost per unit Simple
QUESTION 21 Watson Corporation manufactures two products, Simple and complex. The following annual information was gathered: Selling price per unit Variable cost per unit Simple $47.00 42.00 Complex $26.00 22.00 Total annual fixed costs are $18,000. Assume demand for either product exceeds the factory's capacity. It takes one hour to make one unit of complex. However, Simple takes 50% longer to manufacture when compared to Complex. Only 120,000 hours of plant capacity are available. How many units of Simple and Complex should Watson Corporation produce and sell in a year to maximize profits? either Simple or Complex; it does not matter 80,000 units of Simple and 0 units of Complex O units of Simple and 120,000 units of Complex an equal number of Simple and Complex
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started