Question
Soap Company manufactures Soap X and Soap Y and can sell all it can make of either. Hours available to produce the products is the
Soap Company manufactures Soap X and Soap Y and can sell all it can make of either. Hours available to produce the products is the constrained resources. Based on the following data, which statement is true?
| X | Y | |||
| Sales Price | $20 | $25 | ||
| Variable Cost | 14 | 15 | ||
| Hours needed to process | 3 | 5 | ||
a.Y is more profitable than X.
b.X is more profitable than Y.
c.Neither X nor Y have a positive contribution margin.
d.X and Y are equally profitable.
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Low Income Housing Tax Credit IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
978-1304135087
