Question
The firm has two products, C and D. C requires 1 direct labor hour and D requires 2 direct labor hours. The firm has a
The firm has two products, C and D. C requires 1 direct labor hour and D requires 2 direct labor hours. The firm has a demand for 1,000 units of C and a demand for 1,000 units of D. The contribution margin per unit is $50 for C and $80 for D. The firm has 2,000 labor hours available. What should the product output mix be that maximizes the profits of the firm given that the firm has 2,000 direct labor hours?
| Produce 0 units of C and 1,000 units of D. | ||
| Produce 2,000 units of C and 0 units of D. | ||
| Produce 1,000 units of C and 1,000 units of D. | ||
| Produce 1,000 units of C and 500 units of D. |
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Auditing And Assurance Services An Integrated Approach
Authors: Alvin A. Arens . Randal J. Elder . Mark S. Beasley
15th Global Edition
0273790005, 978-0273790006
