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Remaining Time: 50 minut Company A produces two products in its production facility: Product 1 and Product 2. The company's production process is labor intensive
Remaining Time: 50 minut Company A produces two products in its production facility: Product 1 and Product 2. The company's production process is labor intensive For the current period, 500 direct labor hours are available for production. The following additional information is available: Product 1 Product 2 Sales price per unit $25 $40 Variable costs per unit $12 $22 Fixed costs per unit $8 $9 Direct labor input ratio 0.5 hours per unit 1.0 hours per unit Unit demand per period 500 units 200 units Which of the following statements is correct? O The company should produce 1,000 units of Product 1. O Direct labor hours are not an operational constraint for the company. O The company's projected operating income at its optimal production level is $11,000. O The company should be willing to pay $26 for an additional hour of direct labor time
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