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The M Company produces three products A, B, and C. You are provided with following particulars: Product A Product B Product C $100 $150 $120
The M Company produces three products A, B, and C. You are provided with following particulars: Product A Product B Product C $100 $150 $120 30% 25% 20% Selling price Contribution margin ratio Machine hours per unit Demand for one month 7.5 hours 12.5 hours 12 hours 4,000 units 4,000 units 1,000 units If the total machine hours available for production is 65,000 hours and total fixed cost is $180,000 per month, how many units of each product should be produced and sold in order to get maximum profit, if it makes optimal use of the its available machines hours? Select one: O a. Product A is 4,000 units and Product B is 2,800 units. O b. Product A is 2,000 units; Product B is 4,000 units; and Product C is 1,000 units. O c. Product A is 2,000 units only. O d. Product A is 2.000 units; Product B is 4,000 units; and Product C is 500 units. Dee Company uses single material to produce and sell their three products-- A, B, and C. The product contribution margin per unit is Product A is $54, Product B is $108, and Product is C $60. All three products use same direct material and all have direct material cost per unit of $32, if direct material cost is $8 per pound, how much is Product A, Product B, and Product C's contribution margin per pound of direct material? Select one: O a. Product A is $13.50; Product B is $ 27; and Product C is $ 15 O b. Product A is $ 1.6875, Product B is $ 3.375. and Product C is $ 1.875 O c. Product A is $ 6.75, Product B is $13.50, and Product C is $ 7.50 O d. None of the given choice In constraint resources, a company should always promote the product that has, Select one: O a. The lowest manufacturing cost per constraint resources. O b. The highest contribution margin per constraint resources. O c. The highest contribution margin per unit. O d. The highest selling price
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